Whats the Best Life Insurance Policy?

What is the best life insurance policy? You’ll talk to different insurance agents, financial advisers, and financial planners who will tell you different answers. But they aren’t necessarily as knowledgeable as they should be in some cases. And, there may be cases of conflicts of interest.

One correct answer to the question, “what is the best life insurance policy?” is always “the one that is best suited to my individual needs and financial goals.” Everyone has a personal situation involving their current income and assets, their ability to make more money, their living situation such as whether or not they have children or a mortgage, and life goals and dreams. Any insurance policy needs to be customized to take all of these into consideration.

However, when people are asking the question of what is the best life insurance policy for them, they also need to have answered the question of which insurance PRODUCT is the best suited for their needs-not merely how much death benefit they should have on their life and other minute details like that. And this is where some bones of contention can be found.

Speaking basically, there are three types of life insurance product. These are term, whole life, and variable universal life.

Term life was the original life insurance and for a long time it was the only type that anyone could buy (there were different variations of it, however). Term life works the way its name implies. You take out an insurance policy that will last for a certain term, or period of time. When this term is about to expire, the policy holder can renew the policy or take out a new one-or, they can just let the policy expire and lose their life insurance (or at least that portion of it). If the policy holder does not die while a term life policy is in force, they have forfeited all of their premium money when the policy expires. They no longer need to pay premiums, but they also have lost their death benefit.