Term life insurance: good or bad?

[Ernesto]

I'm 58, retired & have 2 teen age sons. I'm thinking about a 20 year $250k plan.... Am I wise or foolish?

[ewagner]

1. Have you checked the rates?

They're going to be pretty high.

There are better products out there.

[Ernesto]

4. $150 per month, roughly

What better products?

[ewagner]

9. Whole life

some Universal products.......

Check with a good financial advisor or a reputable agent....

do a needs analysis .......

[Ernesto]

14. Workin' on it... thanks!

[GOPisEvil]

2. It always seemed to me like term life is betting on your death.

I mean, if you pay 20 years worth of premiums and don't die, then have you gotten anything from the policy? Do term life policies ever build cash value and pay dividends like whole life policies do? I'm under the impression they don't.

Whole life is my preference.

[shoelace414]

3. whole life

you can do much better with your money than getting a whole life policy.

Life insurance is for the survivors. later in life you don't "need" insurance anymore, nobody is depending on you.

[leftyandproud]

11. NO!

Whole life is the worst rip off on the planet. Stick to level term, insurance @ 10 times your income...and shop for the best rates. Once your kids are independant however, you can drop the amount of coverage and save the money each month. Remember, you only buy it to replace your income when you die...It is for those who DEPEND on your income.

[ewagner]

8. There are some products

out there with a "Return of Premium Rider"

They give you back your premium (no interest)if you outlive the term of the policy (usually 20 years). You can't draw out or get much back until...say ten years of so...depends on the company and the illustration.

[mistertrickster]

5. Term is better than whole life, no question, BUT the question is

how many assets do you have now? If you have a lot of equity in your house and savings/investments etc., your wife and children may not need insurance or may not need a quarter mil.

Also, do you get any insurance from work?

[catmandu57]

6. I think putting that money in savings

will work just as well for you. I looked into something simular and after comparing everything by taking the monthly premium and putting it into savings I was coming out pretty close to what I wanted.
Of course it wasn't anywhere near the ammount that you're wanting, and the interest rates are almost nonexistant right now, but, that has to change.
I've always been told that whole life is a much better deal, but whatever fits go for it.

[PDittie]

7. It depends

Whole life is going to be have a pretty high premium at your age.

What do you anticipate your beneficiary(ies) will need the money for? College, etc.? (You don't have to necessarily answer this question on the board...)

Given your interest and the information compiled as reflected in your first post, it appears you have isolated a need and budgeted its expense.

It might not be appropriate for any of us to talk you out of it.

Term lfe is a good option for people who haven't addressed their LI concerns at a younger age, due to finances or procrastination or other things (or whatever; I don't mean to make assumptions about your personal circumstance).

Assuming you have been wise with the due diligence, make your choice and be content. ;)

[bleedingheart]

10. my brother in law is an investment banker and he told me Term is

better..

Technically you get life insurance because you want to take care of your children/dependents in case you die....and the term should be long enough to cover their maturity.

Term is cheaper than the annuity type and if you stop paying for it you lose the coverage...not the investment in the annuity and as my bro-in-law said...get term and then invest your extra dollars in a mutual fund, CD or something else.

[never cry wolf]

15. Exactly!

The rates of return on whole life SUCK, something like 1 or 2%. You pay term for car insurance, would you want to pay more and have the insurance company invest it for you poorly? Everyone knows insurance companies are just looking out for you, right?

Price out both, pay for the term and take the difference and invest it, you'll be much better off in the long run.

[JCMach1]

12. at 58 premiums will be high

I would get one of the new products that combines whole life with an annuity product you can use after retirement. IE after X years, let's say 10 of paying premiums, it turns into annuity income for you...

Term life is like renting a home and at 58 you WILL pay through the nose for it.

[democratreformed]

13. Term life, IMO, has its place

It is cheaper and, if it's all you can afford, it may be what you need at the time. There are some term life policies that can be converted to whole life as your budget allows.