Should I buy what my agent calls “permanent life insurance” (whole life or endowment or other cash value policies)?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 15, 2020
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Generally no. Assuming that you need life insurance, it is usually better to buy an inexpensive term insurance policy. “Permanent life insurance” or “cash value life insurance” combines the insurance with a savings fund. This means that you pay more than what the cost would be just for the insurance. Some of your money then goes into a savings plan.
While this type of policy might be appropriate in some situations, for the majority of buyers, it would be better to get the best possible price on the right amount of insurance for your needs.
Unless you prefer and can afford the extra expense of buying “permanent life insurance”, buying term insurance will usually save you money. The benefits of this are:
1) You get the same amount of coverage at a lower premium.
2) You buy a larger amount of insurance for the same premium that you would pay had you purchased “permanent life insurance”
3) You save money that can be spent on some other investment or expense.