Many people ask, “What is the best life insurance policy to get?” There are as many answers to this question as there are policy holders. Take a step back and break down the reasons for the coverage, the number of dependents you have, as well as the amount of money they would need to cover their expenses in the event of your untimely demise. No one likes to spend too much time making provisions for their own mortality, but making decisions on these arrangements one time will give you peace of mind for decades. Also, while there are so many options available that choosing the correct one may feel like an overwhelming task, but you do have help available in the form of Life Insurance Basics Guide and other websites, as well as reputable agents referred to you by people you trust.
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The most inexpensive and straightforward policy is term life insurance, which offers protection to your family over a specific period of time. This is not necessarily the best life insurance, but for most people it is the best choice, and the reason for this is simple: you are paying only for life insurance for a a fixed term, and not a combination of insurance and an investment.
A whole life insurance policy wraps these two things together, insurance and a forced savings/investment plan that you’ll pay into each month. You can use whole life for a retirement plan and invest in stocks, bonds or money market funds through it, but be warned: there are commissions and high fees associated with whole life policies, and there may be better ways to invest you money for the long term. Still, if you are over 50 term, life starts to quickly get more expensive and you may need to look at whole life. At some point, usually after 60 years of age, whole life may be the only policy that an insurance company will sell you.
There is no best life insurance policy out there since everyone’s needs are totally different, so take the time and speak to several different insurance brokers to determine what will be in your best interest, as well as that of those you name as beneficiaries, prior to making a final decision regarding the policy itself. Agents are naturally excellent sources of information and you deserve to get as much education as you want for the money you are paying them. Getting a few opinions on the whole range of insurances available will allow you to make a better objective decision without being swayed by one particular agent’s opinion.
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