There was an article in the MSN Money Central Blog last week about how to save money.
We were thrilled that the article recommended going to LifeInsure.com to search the market for life insurance. Of the two recommended life insurance websites, only LifeInsure.com gives the consumer direct access to the life insurance quotes database without asking for personal information.
Financial writers usually agree that term life insurance is the smart buy for life insurance especially for those who need to maximize insurance with the lowest cost, at least initially.
There was an article in the Minneapolis Star Tribune today where Chris Farrell discussed the subject. Here’s a quick excerpt: “I’m a big fan of term life insurance for most people, especially in circumstances such as yours. Term is a pure death benefit. Premiums are cheap if you’re in good health, although the cost of the policy increases as you get older. It’s a simple product and it allows for comparison shopping. You’ll want a low-cost, plain-vanilla policy from a blue chip, financially strong insurance company.”
We agree. He also talks a little about when whole life (or universal life) might be used. Permanent life insurance such as whole life or universal life can lock in the premiums for life (substantially more expensive to start since the premiums are level and the insurance doesn’t expire or go up in cost as term life does.) But the rule is get the amount you need, no matter the type.
The first rule is “protection first.” Make sure you get enough life insurance no matter the type, especially if others are financially dependent on you. What’s enough? Check out the lifeinsure.com site for various methods of calculating the right amount of life insurance.