What is the best life insurance policy to buy?

Answer 1

Depending on your specific situation (family, dependents, assets, age, etc) you may find that either term life insurance or permanent life insurance can be better for you.

As the name implies, the term life insurance offers temporary protection for your most vulnerable years (growing family, kids are in school, mortgage is not paid off, etc). This is the most cost effective type of life insurance for those who seek a temporary solution for their protection needs. If you think there is a chance that you may outlive your term life policy, there is an option that you can add which will return all your premiums back at the end of the term. It is called Return Of Premium (ROP) Lfe Insurance Rider. ROP life insurance will cost slightly more than regular term insurance, but you get all premiums paid back at the end of the term. You can use the cash received to purchase a new term policy, or a permanent life insurance policy, or any other purpose.

Permanent life insurance is needed when looking for a long term protection, that would last until ages 105 - 121. Odds are very low that you will outlive a life insurance policy that is designed to last until age 121. This type of life insurance policy also accumulates cash value, and can be used for other purposes than just life insurance protection. Cash value can be taken out of the policy as loans, and used for any purposes you can think of, like college funding, supplement retirement, large purchases.

So, going back to your question, you have to decide what's best for you: a temporary solution, or a permanent one.