Consider a cash value life insurance policy, which has a savings account if you intend to have the coverage for at least 30 years.
The title above is a quote from the Pittsburgh Post Gazette. The real question is do you intend to have life insurance on the day that you die? If so, you should consider a cash value life insurance policy.
The reason that you have life insurance is to financially help those you love in case you are not there to provide the income that you currently provide.
Here’s what the article says about what kind of life insurance you should have: “Consider a cash value life insurance policy, which has a savings account, if you intend to have the coverage for at least 30 years. Otherwise, consider term insurance, which provides strictly insurance protection for a specific period — say five, 10, 15 or 20 years.”
The bottom line is that a whole life (or cash value life insurance) policy is guaranteed to be there the rest of your life. That’s why it’s also called “permanent life insurance” but because of that guarantee, it’s much more expensive.
The question to ask if you consider it is: Is it really more expensive? It’s certainly more out of pocket but if you ask someone who bought $500,000 of insurance at age 35 and is now 60 years old if they think they made a wise decision, I think you know the answer.
This is all true but it doesn’t necessarily match the reality of two parents on a limited budget with three kids, a mortgage and a tight budget. In that case, make sure that you have enough insurance whatever the type.