Timeline for Universal Life Insurance or Term Life Insurance?
Current License: CC BY-SA 4.0
12 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jun 13, 2020 at 22:01 | comment | added | Eric | I would probably recommend whole life for situations where there is a disabled dependent that will need support their entire life and the main provider may have difficulty having the discipline to invest the difference between term and whole life premiums. | |
| Jun 12, 2020 at 13:32 | comment | added | JBentley | In summary: these situations are complex and depend on the circumstances of each case, objectives of the insured, jurisdiction, etc., so an answer as simplistic as this, whilst applicable to many, can actually be quite bad advice for others. The best advice is to speak to someone who is actually qualified to give an answer tailored to the investor rather than relying on generic advice from the internet. | |
| Jun 12, 2020 at 13:31 | comment | added | JBentley | This answer assumes that life insurance is only for protecting the needs of dependants in cases of unexpected early death. But that's a bad assumption - for many it's about leaving behind a legacy in their will (which may have nothing to do with needs of dependants), or covering funeral costs. In the UK at least, whole of life policies can result in reasonable investments. This is because those who get paid out are partly subsidised by those who fail to keep up with the monthly payments (and thus have their policies voided). | |
| Jun 11, 2020 at 12:51 | comment | added | Pete B. | @Michael I think so. Considering an average software developer salary, it is not uncommon to think that a peak life insurance need is around 2 million, and later the need could well be zero. Phasing out various policies allows more money to be invested further reducing the amount of life insurance needed. Life insurance, rightfully, gets expensive as one ages. | |
| Jun 11, 2020 at 2:37 | comment | added | user12515 | @PeteB. But would that be wise? In my (limited) experience, ten times as much coverage (in dollars) doesn't cost anywhere near 10x the premium. | |
| Jun 10, 2020 at 10:16 | comment | added | Pete B. | @jpaugh Yes you could. You could lump them, or build a ladder. As we age our life insurance needs first increase then dwindle. If you have multiple policies you can pick and choose which policies to drop. | |
| Jun 10, 2020 at 2:39 | comment | added | CodyBugstein | Extremely critical: were you or one of your parents born in the United States? If yes, then your only option is TERM LIFE. This is because the US' tyrannical tax code (which Canada agreed to enforce under FATCA) imposes severe costs and taxes on universal life insurance (among many other things). If you have no US ties then you are free to choose | |
| Jun 9, 2020 at 23:48 | comment | added | alephzero | These policies make perfect sense to your friend. He/she gets a nice commission for ever one that he/she sells! It is no concern to him/her whether you get any benefit from buying one. | |
| Jun 9, 2020 at 18:08 | comment | added | jpaugh | If I understand correctly, you suggest having exactly enough life insurance to cover any financial obligations that would be transferred to your surviving family members? Are you talking about buying a separate policy for each obligation, e.g. one for the house and another for child care? | |
| Jun 9, 2020 at 17:33 | comment | added | Julie in Austin | Long term life policies can be a little expensive before one is certain what life has in store. | |
| Jun 9, 2020 at 16:36 | comment | added | chrylis -cautiouslyoptimistic- | There is something to be said for locking in term rates early if the OP plans to have children. | |
| Jun 9, 2020 at 10:35 | history | answered | Pete B. | CC BY-SA 4.0 |