What Type of Life Insurance Should I get?

Always get term life insurance. With term insurance, you’re paying for the cost of the insurance, nothing more, nothing less, and that’s all you need. Whole Life Insurance products include a savings program within the life insurance, but when you die, the amount of cash value you have in your policy disappears, and your family is only paid the face value of the policy. In addition, you’re not getting a very good interest rate on the money that’s in your cash value insurance, and you’re paying a lot higher fees than if you had just gone out in term insurance.

If you took the difference between the term insurance and the whole-life insurance, and put that money into a solid mutual fund, you would make the amount of money in your cash value several times over. And if the unfortunate were to happen and you were to die, your family actually gets to keep the money in the investment, rather than having the cash value of a whole-life policy disappear.