insurance compare & general & homeowners & pet & term life

Term insurance is where you see the need that you only need temporary life insurance and don’t expect anyone to be dependent on your income if you outlive the term. There are inexpensive and most term policies are renewable when the level term expires. The policy itself doesn’t expire, it just renews itself when it expires. When it renews, your premiums will go up since you are older. Most people get a 30 year term because they have a 30 year mortgage.
Since term is so inexpensive, people usually invest the difference into their retirement accounts. Whether its a 401k, 403b, IRA, etc.
Whole life is a permanent insurance that contains cash value in it. You are covered for life or until you reach age 100. Whole life is the most expensive life insurance product out there. While cash value grows tax-deferred, it is important to know that if you ever wanted to use it, you have to borrow it with a loan interest of 5-8%. If you die, you will lose all cash value. Only way you can take the cash value is that you surrender the policy. Surrender charges may apply.
Here’s a hypothetical illustration of the costs for a 30 year old male seeking $100,000 coverage.
With a 30 year term, it would cost around $300/year.
With whole life, it would cost around $2000/year.
That’s a $1700 difference!
As you can see, the bigger the annual premiums, the bigger the commissions a life insurance agent will make. You can see why whole life insurance is more commonly sold than term. Agents will say anything to make people buy whole life or some other cash value life insurance policy. They’ll say things like term insurance rarely pays death claims. Well, do you know when you going to die? Of course not. So how would insurance agents know that term rarely pays death claims? I’ll tell you how. They never sold a term policy in their life and yet they own it themselves!
Life agents will also say that term gets more expensive when you renew it. While that is true, most people who buy term buy a long term policy such as 20 year or 30 year term. When the term expires, their needs change and so they might not need as much coverage or probably don’t need life insurance any more. You have to be careful when purchasing term insurance. Most agents will sell you a short term insurance of 5 year or 10 year term and then come back to you to convert it into whole life.