best insurance stock - best type of life insurance to option : Search around the web for the best type of life insurance , and you’ll find lots of financial advisers who say , without hesitation , that term life insurance is best. While I generally agree and have term life insurance myself , the right answer for each individual is not always that easy.
The truth is that with life insurance , as with many financial products , “best” is a relative term. The question isn’t , “Which is best overall and for all time?” The question is , “which type of policy is best for me?”
The best life insurance is the one that suits your needs based on your current and predicted future financial situation.
Here , we’ll talk about the major types of life insurance – term , return-of-premium term and permanent – and look at the pros and cons of each. Then , you can decide which type of life insurance is best for you.
Term Life Insurance: Most Recommended Option
The American Council of Life Insurers says that term life insurance policies accounted for 3.7 million new policies totaling $1.1 trillion in face value in 2011. That’s nearly three-quarters of the face value of all individual life insurance policies issued in 2011.
That’s not surprising , given that most financial professionals (at least the ones who don’t get hefty commissions from selling permanent life insurance) say term is best.
And , in many cases , term life insurance is the best option. With term life insurance , you pay a set monthly premium for a certain amount of life insurance coverage for a certain amount of time. You might get $500 ,000 of insurance for 20 years , or $2 million for 10 years , depending on your circumstances.
But the key to term life insurance is that it’s for a set term and that the payments don’t change. Here are some of the pros and cons of term life insurance: