[USER]

I’m seeking some insights on life insurance options, particularly the preference for term life insurance over whole life insurance. Can anyone explain why term life insurance is often recommended over whole life insurance?

I’m weighing my options and would appreciate hearing about your experiences and opinions on this matter.

Thank you for your input!

[Mickael]

Term is cheap and you can get a lot of coverage. The idea is to invest the difference which a lot of people failed to do on a regular basis.

The goal is to accumulate enough cash during working years to not need life insurance during retirement years.

People think life insurance products are a ripoff because they tend to focus only on growth and not other factors.

I know people will disagree but having cash value life insurance is a great tool to protect your retirement nest egg against sequence of returns risk.

Ernst & Young did a great study and explained on how including cash value life insurance is beneficial to a well-balanced portfolio.

Consider browsing: Should I do $500/month full life insurance?

[Scott]

Whole life doesn’t offer you anything you can’t do in the market yourself. Except fees and penalties, they definitely offer fees and penalties.

[Robert]

Because whole life insurance is great if you are the selling it. But the best way to leave a huge amount of money to your survivors for very little cost is term insurance. There’s a huge amount of information on the Interwebs if you just google “whole life or term insurance.”

[Elie]

The way it was explained to me a long long time ago… life insurance is just that, it’s insurance, in case something happens to your life. The main purpose of the insurance is to protect your family because they may be young children who can’t make their own income yet, or maybe a stay at home spouse who also relies on your income. So with term, if you have little kids, the idea is that after the 20 or 30 year policy is done, they should be old enough where they can make their own income and they’re not dependent on you.

And for your spouse, the 20-30 year time frame should be long enough for you to properly save a big enough retirement nest egg that your spouse doesn’t really need the death benefit at that point and they can survive with the savings.

[Robert]

Because many people have listened to Dave Ramsey, who once said whole life insurance was a scam, instead of doing research themselves. Term is cheaper and many people have adopted the “ get rich later” strategy.

[Author]

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