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: