Life Insurance

Which is better: Term Life or Whole Life?

For most families, term life insurance is sufficient, but whole life and other forms of permanent coverage might be beneficial in specific circumstances.

Term Life: If you just need life insurance to replace your income for a specific amount of time, such as when you're raising children or paying off your mortgage, term life is the way to go. Term Life is the most cost-effective of the two. The majority of term life insurance contracts can be converted to permanent coverage. The conversion deadline varies per policy. Do you believe you might make a better investment with your money? Buying a cheaper term life insurance policy allows you to invest the money you would have spent on a whole life insurance policy.

Whole Life: If you want to give money for your heirs to pay inheritance or estate taxes, choose whole life. Federal estate taxes will apply to estates valued more than $11.7 million per person or $23.4 million per couple in 2021. Inheritance and estate taxes vary by state. Have a lifelong dependency, such as a disabled child? Life insurance can be used to fund a trust that will care for your child when you pass away. Set establish a trust with the help of an attorney and a financial counselor. Whole life insurance could recompense other children if you plan to leave a business or property to one child.