Term life insurance and whole life insurance have been at odds in the life insurance business for a long time. Even though the industry won the battle, the consumer still has the same question. Which is the best? The question is wrong because the goals of these two policies are different. The real fight is over whether to buy term life insurance and invest the difference or buy permanent life insurance. People who say "buy term and invest the difference" think that the difference in premium costs you save by buying a term policy instead of a whole policy would be better invested. Permanent life insurance wasn't meant to be an investment from the start. It was made to meet the long-term insurance needs of people. Permanent life insurance with a cash value that grows over time is an added benefit, not an investment. The best portfolio of life insurance includes both permanent and term life insurance.
Permanent Life Insurance - You should buy permanent life insurance if you need it for a long time. Permanent life insurance is a must if you want to cover your final costs and your retirement. When you retire, life insurance is important because it gives you more ways to use your retirement benefits as income instead of for life insurance.
Term Life Insurance - Term life insurance is for short-term needs. Your permanent base of life insurance will be complemented by term life insurance. You can add level term and decreasing term riders to your permanent policy to take care of short-term needs like protecting your mortgage and paying off short-term debt.
It's important to know why you want to buy life insurance. You will be much happier with the purchase if you can figure out why you made it. Do a quick analysis of your needs. Think about what you care about and who you care about. A gift of love is life insurance.
