How to save on insurance: Whole life policy vs Term life insurance

Life insurance is important because it's a better way to love your family that ensure they’ll be taken care of if something happens to you.

According to EveryDollar post, research shows 64% of policyholders pay thousands more for life insurance than they have to each year. What are they doing wrong? They’re throwing money into a cash-value insurance policy.

People flock to one of the worst financial products out there, the cash-value policies, because they package insurance and savings together. The investment returns are very low, and your money is eaten away by big fees and commissions. Plus, if something happens to you, your family only gets the face value of your policy.

A Better and Less Expensive Plan for the Future is Term life insurance
  • Term life insurance is far less expensive, and you can invest the leftover money in growth stock mutual funds that you control. Here’s a good example.
  • Term life gives you the best mix of cost, coverage and control. So trade in that whole life policy for term life insurance! You can pick the right amount to take care of your family for a lower monthly price. Since you pay less, you can direct that leftover money toward investing or paying off debt.
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