Is it good to have term and whole life ins?

Answer 1

yes Term insurance is used for a specific purpose, which is to offer financial protection during a specific period of time when someone (usually children) is financially dependent upon the insured. It is expected that eventually children grow up and become self supporting, therefore they will not always be financially dependent upon their parents. Term life insurance is much less expensive than whole life insurance. Whole life insurance does not have a limited term, it is insurance that you intend to have until you die, whenever that may be. Not only does it offer financial protection for your dependents, but it also is a form of investment, since it gradually acquires a cash value, and can be cashed out if the insured chooses to do so. However, many other types of investment have generally performed better than the rates offered by whole life insurance, so in general this is not the best form of financial management. I would personally suggest that if you have dependents you should have term life, and if you don't have dependents, you don't need any form of life insurance - with the possible exception of funeral insurance, if you are concerned that the cost of your funeral is going to become a burden for someone eventually. But if your estate will have enough money to cover the funeral costs, then funeral insurance is also unnecessary.