RE: which life insurance is the best one to get and the most affordable and reasonable? Is it the whole life

insurance? or premium life insurance? or term life insurance?

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There are several opinions on this. If you have term insurance, you pay the company to pay your beneficiary a specified amount if you die within the term (effective dates) of the policy. As you get older, the cost (the premium) of the policy increases, because as you age, the chances you will die soon increase slowly but steadily. If you stop paying for the insurance, there is no refund or cash value to be returned to you.

If you have whole life insurance, you pay a set amount based on your age at the time you start the policy, and the payments remain the same for the rest of your life, or until you reach age 100. There is a cash amount that slowly increases, which after a few years gets interest added. That interest can be used to either partly pay the cost (premium) of the policy, or the interest can be used to add to the amount of your insurance, so that the amount of your insurance keeps pace with inflation. You get to choose how you want to spend the interest.

You can ask a few companies for quotes — a price offer — for whole life or term insurance and compare the costs; there will be surprising differences. Someone may tell you to contact an independent insurance agent, who is supposed to offer you insurance from a few different companies. An independent agent will offer you the insurance that pays him the best sales commission, so don’t go that route unless you have a relative in the agency, and then compare other offers from other companies anyway.

Star Answered on July 26, 2020.
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