I was told Whole is better, but how? What are the differences between, Whole, Term, Variable and Universal Life Insurance?
Chosen Answer:
Whole life you pay for your whole life, and you pay up to 9 times as much as you would pay for term. The agent will tell you of the investment quality of this type, and interest you get, but it is so insignificant it is actually stupid. He also gets more commission on whole life than term.
Term is for a term. Look for level term as far out as possible. It is very inexpensive especially when you are young. Term is like renting but makes more sense than whole life.
Variable puts your money at risk in the markets. When things are good, you may get more cash added. When bad you get less. Stay away. Agents make more money on this type of policy than any other, so watch out.
Universal life is a type of whole life but has provisions whereby you can change the amount of money you wish to spend, or decrease or eliminate for a while.
Something your agent does not tell you. If you borrow against your whole life policies, you pay interest…………… on your own money. You pay the going rate, more than you are being paid on your policy.
Moral of story: The answer is level term
