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What to consider before you buy a whole or term-life policy

Every person is unique, and the decision to buy a whole vs. a term policy should be guided by your specific situation in life and the things that matter to you, including such things as:

  • How old are you?

  • How good is your health?

  • What are your family’s financial needs?

  • What are the ages of your children?

  • Are you concerned about long-term health expenses and serious illness?

  • What is the amount of your mortgage and other debts?

  • What are your plans for retirement?

  • What college plans do you have for your children?

  • How will you pay for funeral expenses?

  • Are you concerned about estate planning and tax ramifications?

  • Are you setting up a trust as part of your will?

  • Do you want to leave part of your estate to charity?

  • Do you have existing life insurance, perhaps through your employer?

There will be a considerable cost difference between a term policy and a whole life policy at first but remember: whole life premiums stay the same over time, and term coverage becomes increasingly more expensive with every renewal. When you consider all the benefits that a whole policy can provide over the course of your life – and the certainty of an eventual payout – you may feel it’s a better overall value.

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