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I have heard many different views on whole life vs term life insurance. I believe there is value in both policies as they do different things. Term is great for covering a debt like a mortgage or student loan because it only covers a certain amount of time, typically being 10, 20, or 30 years so you can get a higher benefit for less. The reason it is less is because only 2% of all policies are claimed because people generally out live them. But again is great to cover a debt that runs out after a certain period of time.

Whole life is great as an investment. Since it has a cash value account that grows up to 6% a year it can be a wonderful long term play for retirement or even a kid’s college fund. You can then use it for your business if you are a business owner as well for growing equity and value to your business. It is the safest investment out there and has been around for literally over 100 years. The other benefit to it is it doesn’t run out so there will be a guaranteed payout unlike term.

A long term care rider an also be added to a whole life policy for literally a couple dollars a month or free depending on what carrier is used.

The difference though of course is that whole life is more expensive because of the added benefits. So is one really better than the other? Definitely not on it’s own, it all depends on what people’s needs are, budget is, and what existing plans they already have in place.

If you would like a quote for to talk more about this, please email me at chris@therockinsure.com