Do you have Life Insurance? Term or Whole Life?

amother

Tue, Oct 27 2009, 8:07 pm

Do you have Life insurance? Term or Whole Life? If yes, what made you choose one over the other?

I just had a long conversation with a well known accountant who said that Whole Life Insurance is a risk- you can pay big bucks (about a hundred thousands dollars for a million coverage), and if the company goes under you have zero. He said Term Life Insurance is a fraction of the cost, but the disadvantage is that you can't get it past a certain age.

What makes more sense to you- Whole Life or Term Life and why?

amother

Tue, Oct 27 2009, 8:10 pm

Both Dh and I have term. Dh worked for a life insurance agent for 8 years, and said this is the way to go.

Mirabelle

Tue, Oct 27 2009, 8:12 pm

We have term.

The cost of whole life was MUCH MUCH higher, I don't think we could afford it even if we really wanted it.

amother

Tue, Oct 27 2009, 8:27 pm

I have term. It was explained to me that whole life is more of a risk in terms of investment because the company could go belly up. I get it through my union and for two hundred thousand dollars worth of coverage I pay twenty dollars a month. This might seem like a lot but it is worth it to me in case Gd forbid I should go. My children are very young and I want them to have as much help financially as possible. I am thirty and I have twenty years of term so it will be good until I am fifty and then I pray my children will have the ability to cope financially without needing me to support them as much!

amother

Tue, Oct 27 2009, 8:28 pm

doodlesmom wrote:

Whole life

Are you in the "line" and get it very reasonably? Now that Ive done research, most people who have whole life are either in the line and get it very reasonably, or are very wealthy and can well afford the cost of it and/or loss of it all.

Is there a way to get coverage close to a million without paying 100,000 over a few years?

Tova

Wed, Oct 28 2009, 6:11 am

Term for both of us, with a portion of it being return of investment. By the end of the term, all our kids will iy"H be married and independent so we saw no need for a whole life policy.

chayitty

Wed, Oct 28 2009, 7:10 am

I have term. It's only needed for me as long as my kids r young. My husband has both

Mrs Bissli

Wed, Oct 28 2009, 8:48 am

DH and I have term policies from separate companies (mine is via work), it's long enough to cover till the youngest child turns 25. You really need to think what you need the money for. For us, it's really to cover costs till children get independent. If you own a house, you need to have a policy adequate to cover mortgage. We also have separate critical illness cover--I think this one is for life or till like 75-80yo.

And we dot view insurance policy as investments. Variable policies do not offer good return or inflation hedge or good liquidity.

greatfulmom

Wed, Oct 28 2009, 10:39 am

I don't understand one point here.

Even after your kids are married, don't you want to know that you are insured in case your husband (the bread-winner) is gone Chas Vashalom at an earlier than normal age?

wtvr

Wed, Oct 28 2009, 11:41 am

We have term on myself, and both on DH- term and a little bit of whole, which locks in the term. (s/t like that).

I don't work, but if, G-d forbid, I were to go, it would cost alot to replace me!

It's time to re-evaluate it, though, because we're almost three kids later.

Tova

Wed, Oct 28 2009, 2:29 pm

greatfulmom wrote:

No, because I have the ability to be self-supporting, with H's help. [In fact, I support us now as my husband is learning in kollel.]

naomi6

Thu, Jul 11 2013, 10:05 am

Only term makes sense even the agents try to sell whole. Even u can afford it its a very poor investment they take allot of for cost of insurance. U can always make better investments. If ur healthy u can get term even when yet older

amother

Thu, Jul 11 2013, 10:09 am

we have the one that is an investment also. We both have in case ch'v something happens to either of us. We have NY Life, which has been around 168 years. I sure hope they don't go under Confused

amother

Thu, Jul 11 2013, 10:22 am

My dh has whole life with NY Life too. This thread has got me thinking we should also have term on both of us.

chocolate chips

Thu, Jul 11 2013, 10:41 am

My dr actually explained it to me that whole life is better since it is more of an investment and she has it and plans to be able to use some of it for marrying off her kids etc. Problem is, it is really expensive.

We have term, from the same company (my bil does it) and bh it covers us for now if ch"v something should happen.
Iy"h when I start raking in my millions Ill be able to afford something better.

amother

Thu, Jul 11 2013, 1:40 pm

We have term. Whole life is almost never worth it. You get a very very low rate of return and would almost always be better off investing the money elsewhere. Insurance and investments shouldn't be mixed.

goldyisintown

Thu, Jul 11 2013, 1:48 pm

its a myth, a company that sells life insurance in NY is almost immpossible to go belly up, the NYS insurance department is one of the strictest in the country, and its much more strict then the banking department, on top of that, they insure you up to 500,000 in cash value, so you have more chances loosing your money in apple bank checking account then in a insurance company doing business in NYS.

see link attached

http://www.nylifega.org/docume.....3.pdf