Building Insurance Quote
Could Possibly Use Life Insurance Quotes Money if needed?
1)I already have term life, I now have an opportunity to get a small whole life policy. I wanted a whole life policy, but at this time can not afford it. Does it make since to purchase a small plan, which would give me a little more coverage and give me the benefits of a whole life plan as far as, cash value building, that I could possibly use if needed?
Term insurance is designed for a TEMPORARY need, for a specified period of time.
According to insurance industry studies, the likelihood that a Term policy will pay a death claim is only about 1%. The reason is that Term insurance expires, lapses for non-payment, or converts to Permanent insurance prior to the death of the insured. The reason that Term is so “cheap” is that the insurance companies don’t expect to pay the death claim.
Although Term is good for temporary needs, it would be a good thing to OWN some life insurance, instead of RENTING it. With Whole Life, you OWN it. With Term, you are basically RENTING it for a specified period of time.
Here is what I recommend.
Contact a LOCAL agent, and have him/her do a Financial Need Analysis (FNA), or other Total Need Program, to help you determine in your own mind, how much, and what type or combination of life insurance you need, to reach your short and long-term goals and objectives. After the FNA, you will have more knowledge and a better understanding of your total need.
The FNA will also help you determine if you have a need for Disability Income Protection, to provide an income, should you be sick or hurt and can’t work. It will also help you determine if you need an Individual Retirement Account (IRA) to provide an income at retirement time. (All that will be there when you get there is what you send on ahead.)
According to statistics, disability is a greater risk than death prior to the age of 65.
