Buy Term and Invest the Difference is an often heard phrase in the insurance business. Briefly, it basically means don't buy permanent life insurance, buy term and take the difference in cost and invest. It's always spoken by those who don't believe in permanent insurance. It's pretty short-sighted as there are numerous benefits to permanent insurance and many different situations where permanent insurance does make sense. So the real question becomes, is your situation one of those that requires permanent insurance? Is permanent insurance for you? Or said a different way. Which life insurance is best for your situation?
Personally I think term insurance is the greatest product in the world. It protects the ones you love for the most important years of yours and their lives. Typically available with guaranteed rates for 10 years, 20 years, 30 years and to age 65. There is even something called Term-100 which is basically permanent insurance with none of the frills of permanent insurance.
For the benefit your beneficiaries can potentially receive (remember you have to die to win!) it's relatively cheap and not too hard to get, subject to average health.
Step 1: If you don't have term insurance or more likely don't have enough, get it now. It's quick, cheap and easy and your family will thank you for it.
Step 2: Once you have it, then you can discuss the options for permanent life insurance because most term policies can be switched to permanent with very little effort and with no underwriting.
Step 3: If it makes sense we will get you some permanent life insurance, if it doesn't make sense, we can invest the savings for you!
A future blog will help you answer the question. Is permanent insurance for me?
Once again, this is just my opinion!