Term Life Vs. Whole Life: Pro’s & Con’s New Jersey NJ
Reader’s Question:
I’ve been doing a lot of reading regarding term life and whole life insurance policies here in New Jersey and I got confused, should I pay the high-price of a whole life insurance or just get a term life which is cheaper and just renew after the policy expires?
Yvonne
Camden, NJ
You have a very interesting question there. A lot of people are confused as to whether to get term life insurance since it is cheaper or get a whole life insurance policy since there is no need to renew every time. But the best answer to this would be to determine if you will need life insurance coverage for a temporary period of time only, or if you want to get coverage for the long-term.
Term life insurance would be highly advisable if you only want life coverage while you take pay-off long-term financial obligations such as supporting a growing family, paying house mortgage there in New Jersey, student loans, credit card bills or debts, or while paying for your child’s college tuition, or also if you are paying a family member’s health care needs. This kind of insurance would also be more cost-effective for people who are involved in high-risk activities, hazardous work conditions or is inclined to participate in dangerous hobbies.
But what if you are thinking about lifetime coverage? Even if you start off paying big life insurance premiums what’s important to know is that, under a whole life insurance policy, a portion of what you are paying actually goes into a sort of savings account, known as a “Cash Value” feature. It accumulates growth in your policy and allows you to have money available for future needs while maintaining adequate life insurance coverage.
Tags: life insurance advise, whole life insurance, term life insurance, advise
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