Term Vs. Whole Life Insurance

Today we are going to talk about life insurance. There are many different types and it can get very confusing. One of my basic investing philosophies is KISS (Keep It Simple Silly). If you don’t understand what you are buying – YOU SHOULD NOT BUY IT!

Today I will talk about the difference between Whole and Term life insurance. Term insurance lasts as long as you pay for it. It is like car insurance, if you stop paying the bill, the insurance stops! Term insurance is VERY cheap because your odds of dying are very small, at least while you are young and in good health. However, Term insurance will adjust (and go up) each and every year. When you get over 50-60 it gets quite expensive. You can also get term that keeps the rate same for 10, 20 or even 30 years. You start by paying more – but the payment will stay level.

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