What I need to do
Most people have life insurance policies that cost them a ton of money. Whole life insurance is the name of this policy. Eventually you will realize it is a scam to cheat you out of your money. People need to get term insurance and invest the difference. You will get to pay less money for a shorter amount of time. Invest your money and you will end up with a great return.
What will happen
You will be buying your insurance at a fixed rate. You risk of dying goes up as you get older as well as your rates for being insured. When you are twenty five you will pay a lot less for term insurance then when you are fifty. You buy one contract for twenty five years and have a fixed rate until your contract is up. Once you have a new contract then you will pay much more money. For the whole insurance charge you will pay between the high and low of term every month. More money that necessary will be paid for the first thirty years while less money will paid after that until you die. Instead of paying a lot more money than you need to look at a different option.
More things that are wrong with whole insurance
These people will take the money and put some of it into a savings account for you. They do this to look better, but it just makes them look worse. You family will be given the choice of either taking the savings money or the death benefit. Instead of allowing you to use your own money, they will charge you interest to take it out. You probably will never see your money again unless you take it out with a loan.
Now what do I do
You should buy term insurance for time of twenty five years. I would suggest that you invest the difference between the price of whole and term. You will end up with more money than if you used a savings account. If you are young and healthy then you’d probably pay about forty a month for you and your spouse. With whole life insurance you could spend five hundred a month. Once you have switched to term then you can invest the extra money so by the time your term is up you will have enough invested that you no longer will have to have life insurance. You will be able to learn quickly how to better spend your money on life insurance. You will end up having more money in the end if you do it on your own. You will find out why whole isn’t as good as term.
