Whole life insurance advice

“Waste of money better invested elsewhere!”

Buy term and invest the difference? (Part 1)

If you’re looking for whole life insurance advice you’ll come across many strong opinions of why whole life insurance is bad and a waste of your money.

But don’t let the headings of this article fool you! Read up on some of the pros and cons of the whole “buy term and invest the difference idea."

You may also want to read about some of the advantages of whole life insurance as well as the disadvantages of whole life insurance rates to get a solid idea of what whole life is all about and whether it’s really for you!

Get a general idea about the policies and then talk to a knowledgeable and trustworthy agent for whole life insurance advice to help you decide what will be best for you and your family.

Be prepared by educating yourself.

Whole life insurance Advice –
Life insurance is not an investment

If you ask a financial advisor…they might just tell you to buy term and invest the difference. A life insurance agent may tell you to buy for the long haul.

So who is right? Well… they both are… or can be!

Let me explain….

As an investment… life insurance is not a good one and that’s because…. it is NOT an investment… so don’t let anyone tell you that it is.

Life insurance is a form of risk management. In other words… you purchase life insurance to manage the risk of you dying. In return for the premiums you’ll pay, the life insurance company (hopefully with good life insurance company ratings) is assuming that risk and will pay your beneficiary the “death benefit” if you die.

When comparing whole vs term life insurance, whole life insurance rates are indeed much more expensive especially when compared to term!

In general, you should try to save as much money as possible when you’re buying life insurance and certainly invest what you can to prepare for retirement.

So through the eyes of a financial or investment advisor the higher premiums of whole life may seem like money wasted that could go towards an investment with a good return.

You really can't blame them for this because it is their job to seek out ways to maximize your money for a good return. It's what they do!

Now through the eyes of a life insurance agent they may view whole life or permanent insurance as a superior product because a whole life insurance policy is certain to pay a claim no matter when you die. It could be a day from now or 50 years from now, but it will pay out that claim.

You can look at it this way, you insure your home against damages, you insure your automobile in case of an accident. Out of these two, you really are not certain that something might happen to your home or your car or even that you'll ever need coverage for these things!

But guess what? You do have that coverage there just in case, don't you.

So why not insure your life (for a lifetime) when you are absolutely certain that one day you will die?

Even though term life insurance rates are definitely cheaper and who wouldn't want that? You run the risk of not being insurable later in life after your policy expires and in addition, your term quotes will be much higher!

You don't know what life will throw at you, all you can do is be as prepared as possible.

Read on for the bigger picture……

Term Versus Whole Life Insurance

Problems with “buy term and invest the difference idea”

• Your premiums will be higher


• What happens when you still need or want life insurance later on when your term policy is up?


• Will you still qualify for life insurance?

In a perfect world the above “buy term” advice may be pretty good. But you should realize that when you buy term, you only have temporary coverage and once your term is up and you still need life insurance those low term quotes won’t be so low anymore, resulting in higher premiums!

So let’s say you get your cheap term life insurance quote and you’re happy with those numbers because they’re cheap and you get coverage for 20 years! Woo hoo!

You also see that you’ll be saving quite a bit of money compared to a whole life policy so you can invest it right? Good idea!

One main problem with the “buy term and invest the difference” advice is that when you buy term you are assuming that after your “term” is up you will no longer need a life insurance policy!

Read an example on what could happen once your coverage runs out here on define term life insurance.

Remember that even though the term life insurance cost is cheap it is only temporary and does not build cash value which whole life insurance does as well as other permanent policies.

Speak to an agent today for whole life insurance advice and put them to work to help you find a policy that fits your needs.

If you are in the Houston, TX area have a friendly agent contact you with a quote!

Go to Buy Term and invest the difference (Part 2)

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