Is cheap life insurance worth the cost?
Cheap life insurance has become almost as big a concern for the insurance industry as cheap auto insurance. People are getting tired of paying out thousands of dollars a year, and seeing nothing in return. But is a cheap life insurance policy really one that you want to hold?
Let’s face it; most of the time when you’re looking for cheap life insurance, what you’re going to find is term life insurance. Term life insurance is not recommended by me, or by any experts in life insurance that I’ve ever met. It’s just about useless when you compare it to a whole life policy. But yes, it is about half the cost, and many people purchase it every year. However, when they’re still alive in 5 years, and their term life policy has expired and the now need to purchase a new one at a higher premium because they’ve aged, maybe they’ll think back and recall that they could have purchased a whole life policy with a premium that never went up, and they’d still be covered and not have to go through the whole purchase process again.
The fact is that most times cheap life insurance and term life insurance go hand in hand. But the cost for a standard whole life policy is not that much. For only $75 a month, depending on age and health, you can purchase a whole life policy that will serve you much better than any term life policy every could. Too many people are saying ‘oh, I’d rather pay $35 a month’. Well so would I if it was the same thing, but it’s not! It’s like saying your rather pay $400 a month for a car payment than pay $900 a month in rent. That’s great! You planning to live in your car? You just can’t compare apples and oranges, and that’s what people do with they talk about price differences between whole life and term life insurance.
Whole life insurance doesn’t qualify as cheap life insurance in most people eyes, but it truly is fairly inexpensive. Term life insurance, most often considered cheap life insurance, is not worth the money you save to purchase it. You might as well insure yourself by dropping a penny a day into a big jar and letting your kids take it when you die. It will amount to about the same thing, and probably be more useful to your children because they’ll actually be able to get their hands on it right away.