Is Cheap Life Insurance still Great Life Insurance?

Is Cheap Life Insurance still Great Life Insurance?

People may think Cheap Life Insurance is Term Life Insurance and and the more Expensive Life Insurance is Whole Life Insurance could be better.

If you are comparing Whole Life Insurance vs Term Life Insurance then YES, "cheap life insurance" is the better life insurance for everyone.

If you are looking for cheap life insurance then look no further. Term Life insurance is the only way to go. Although it is considered the "cheap life insurance" you need to understand that like auto insurance it is pure insurance. When you purchase auto insurance there is no investment portion. There is no bundling of investment and auto insurance together. It is plain and simple. Pure life insurance = Cheap life insurance = Term Life insurance.

REMEMBER: Term Insurance offers the MOST life insurance coverage at the MOST afforable price.

With Term Life insurance / The "Cheap Life Insurance" you can have the greatest amount of coverage ONLY for the time that you need it. Time that you need it meaning ONLY when you have children/dependents which is a policy period of 30 years or less.

But Term insurance is only for a set period of time!

Do you need life insurance forever? Do you want to continue paying high life insurance premiums for the rest of your life?

As you get older does life insurance become more expensive or cheaper?

More expensive. You understand that the older you are the higher the risk you will be right? The higher the risk the higher your insurance premiums will be if you have a Whole life insurance policy.

But my agent promised me that the life insurance premium will stay the same for the rest of my life!

Initially the life insurance premium will stay the same on a whole life insurance policy but remember, higher the age the higher the risk = the higher the cost to insure you.

But I have "Cash Value" with my insurance policy. Doesn't that mean something better than cheap life insurance without an investment cash value?

The cash value or the investment portion that you are being pushed to purchase whole life insurance with is never actually yours. You can only borrow from the cash value portion of a whole life insurance / permanent life insurance policy. If you die then the family receives the death benefit and NONE of the cash value. The cash value goes to the insurance company.

On a whole life insurance policy with the first year of premium payments you get NO CASH VALUE.

What happens is that you continue to pay the same premium each month but as you get older the insurance company will start to deduct from your beloved "cash value" investment because the cost of insuring you goes up. Even though the premium is the same the cost must come from somewhere which is taken from your cash value.

Whole life insurance policy owners, check your policy each year. You will start to see decreasing amounts in your cash value as you get older because it is being drained by the higher cost of insuring you.

Eventually the high cost of insuring you will eat up all your beloved "cash value" and you will see your monthly life insurance premium payments skyrocket unbelievably high and you will be asking yourself what happened.

By that time the life insurance agent who sold you that whole life insurance policy will be long gone and your life insurance company will care less if you cannot afford the new high monthly premium payments that will continue to go up each month.

They would rather not insure you anymore because the risk is too high at ages over 65. It is in their best interest to charge your more OR just have you cancel the whole life insurance policy so they would not have to worry about the death benefit.

Just ask your whole life insurance agent if you could see the cost of insurance table for adults ages 65 and older. You'll see that the cost of insurance goes through the roof.

Stick with "Cheap Life Insurance" or Term Life Insurance. Determine how much coverage you and your family really need for how long a period of time and then compare several cheap life insurance quotes and purchase your term life insurance policy.

When people buy life insurance they mainly think of the death benefit or how much their family gets if they die. They do not ask "Why do I need Life Insurance and do I need it now?".

Purpose of life insurance is NOT for your family to get a large sum of money if something happens to you or the bread winner of the family.

What will happen to the children/spouse (the dependents) if the breadwinner or income provider dies?

The income no longer comes in each month to provide for the family! It's a serious financial loss and puts the rest of the family in financial hardship. Without an income source suddenly the family's standard of living will drop.

How much will my dependents need to live comfortably if the income provider were to pass on?

Again, cheap life insurance (Term Life Insurance) is not bad life insurance.

More expensive Life insurance (whole life insurance) may not be great life insurance either.

If your purpose to buy life insurance is to protect your spouse and kids from financial hardship in case of your loss then term insurance is the only way to go.

Your kids will only be dependent on you for a set period of time less than 30 years before they become financially independent on their own. After they become financially independent then you will no longer need life insurance to protect your children.

At that time why would you need life insurance any longer?

If it is to protect your spouse or your own parents (if you are supporting them) from your loss then that is acceptable but preventable.

There is an additional strategy that we wholeheartedly recommend and implore you to take. That is to become self insured through the savings of purchasing the "cheap life insurance" or Term life insurance.

As an insurance comparison site in finding cheap life insurance, determine the amount of life insurance coverage you need, compare the life insurance quotes that you receive and decide on a policy.

BaseQuotes.com provides a life insurance rate / life insurance quote from serveral insurance companies in your area. Compare the life policies and decide on which life quote will suit your family best.