Amanda. Do not buy term insurance.
It is never paid off and gets more expensive and less value as you grow old.
I disagree - always buy TERM Insurance and invest the difference (betw. Term and Whole Life).
Amanda. Do not buy term insurance.
It is never paid off and gets more expensive and less value as you grow old.
Term insurance is not a forever thing, hense the name term, you are only in need of it for a short term. It is in no way to be a replacement for a whole life, investment, mutual fund, retirement fund. I have enough to keep my income at its current level, if anything were to happen, my wife could invest it and replace my annual income with the interest it earns. Now, when the kids are out of college and we have no mortgage, we cancel the term policy - we don’t need it anymore. Term life insurance is not wealth building tool, but an income protection tool.