I only have a minimal policy that I have had since I was in high school...basically enough to cover if I croak and they gotta pay to chunk me in the clay.

I've received (through professional organizations, etc. of which I am a member) offers for group term life insurance. What's the difference between term life insurance and whole life insurance?

Now I may end up with a beneficiary that could use the benefits if I kick the bucket. Inform my ignorant ass if you will, TDub...

7/31/2008 10:01:17 PM

term is cheaper than whole

7/31/2008 10:03:36 PM

Pros and cons of each?

7/31/2008 10:10:55 PM

Term is only valid for x number of years. After those x number of years if you haven't kicked the bucket you lose your insurance.

Whole covers you until you die or decide to cash in the policy.

You can do a combination of both which is good. You can also convert a term-life policy to whole-life down the road.

Reason why I know this is because I just got my policy today and my agent sat down and explained it all to me.

I am paying $35 a month for $115K of total insurance. $25K of it is whole and the rest is on a 20 year term. This covers the value of my house just incase i kick the bucket.

I do have 150K term life insurance with school but once I retire or quit teaching I lose that policy.

7/31/2008 10:16:36 PM

whole life has an investment component. however, it isn't a very good investment.

without a doubt, the best option is to carry term insurance during any period where you actually need life insurance--the cost savings will allow you to invest more money in GOOD investments (like stock index funds). Eventually you should amass enough of a fortune that you won't even need to carry life insurance, and then you can just stop. In the meantime, you're fairly young--the term insurance will be inexpensive.

the only other reason I can think of to carry whole life is as a tax-efficient vehicle for passing down wealth when you die...but I doubt anyone in this thread has enough money or is old enough to make this a viable consideration.


What do you even need life insurance for, Dan (other than possibly a minimal policy just to cover burial expenses)?

Quote :

"This covers the value of my house just incase i kick the bucket. "

Are you upside-down on your mortgage or something? Even if you are, why in the world do you need more than the $150k term policy you have through work?

[Edited on July 31, 2008 at 10:45 PM. Reason : asfdad]

7/31/2008 10:43:46 PM

Ummm...there might be another wife in the equation here in a while.

7/31/2008 11:14:35 PM

a wife who will be financially dependant on you?

7/31/2008 11:19:03 PM

whole life is always a bad idea.

term life is worth it.

8/1/2008 1:26:10 AM

if you need life insurance.

I do. You do. Plenty of people--especially early 20-somethings--don't (other than maybe a small policy just to cover burial expenses).

8/1/2008 1:53:34 AM

I will give you great advice.

Buy minimal life insurance.

If you die you don't want to be a burden on the people who survive you. Make sure the policy covers burial, ~1 year living expenses, and maybe a few other items if you have significantly leveraged or mortgaged assets.

If you die your survivors should have time to adapt to their new surroundings without incurring financial hardship, selling assets for pennies on the dollar, etc

However, just because you died does not entitle your survivors to live in the lifestyle they were accustomed to or even worse a lifestyle that is disproportionate to what they would have been living if you were alive.

The most screwed up people you will ever meet are living off checks that they get for nothing.


Take what you save on your life insurance policy and get yourself a good disability policy.

You are like 20x more likely to file for long term disability than to actually die these days. I dont care how much the people around you say they care about you or love you. It's a different ballgame when you cant produce income and are a complete drain on the people around you.

Would you rather your son do meth on your life insurance policy?

Or pay your mortgage as a 36 year old who cant work with your disability insurance checks?

8/1/2008 1:56:21 AM

i dont believe in life insurance, no one gonna profit off my death. my dept pays enough to toss my ass in the ground.

8/1/2008 5:50:31 AM

Quote :

" Are you upside-down on your mortgage or something? Even if you are, why in the world do you need more than the $150k term policy you have through work?"

The 150K policy is paid for by work and my pay won't increase if I didn't use it so I have it.

The 115K policy is the one specifically meant to cover the house just in case something happens.

If something did happen to me I know my mom couldn't afford to pay for anything. She is retired and she only has enough to cover the monthly expenses.

8/1/2008 6:51:58 AM

Quote :

"a wife who will be financially dependant on you? "

well, there's the possibility of kids, just maybe.

And I'd want to give my other half the option of staying at home with the rugrats.

8/1/2008 7:07:42 AM

^ oh lord.

little turd cutters running around.

8/1/2008 8:28:47 AM

Wan...so funny, you are.

LAWL.

8/1/2008 10:21:12 AM

Quote :

"Take what you save on your life insurance policy and get yourself a good disability policy. You are like 20x more likely to file for long term disability than to actually die these days. I dont care how much the people around you say they care about you or love you. It's a different ballgame when you cant produce income and are a complete drain on the people around you. "

good point

8/1/2008 10:58:35 AM

who gives a shit when you're dead past funeral expenses (assuming family is poor). pay for disability

8/1/2008 11:32:08 PM

well, it's different if you have kids, or sometimes even a wife.

8/1/2008 11:46:16 PM

My mother took out a 20k whole life policy when I was a child. I pay 80 a year for it now, its basically my burial expense.

When I got married and bought a house I had to get a much bigger plan. I shopped around, had one double my rate after my physical, so I called another company who didnt. I have term life 30 yr and 500k worth. Costs around 34 a month.

The current insurance im looking for is long term disability, as the poster mentioned earlier you are more likely to become disabled than killed at our age. These long term plans are pretty expensive at just over 100 a month for an own occupational policy.

My I recommend zander insurance. They shop different insurance companies and give you a list for you to decide, its very easy and they are great to deal with. yes, yes, I got it from dave ramsey.

8/2/2008 8:51:52 AM

Do you guys ever search?

?topic=475382

8/2/2008 10:54:44 PM