YOU ASK:

What is the best life insurance?

WE ANSWER:

The best life insurance for you depends on your family and financial situation and needs. That is why it is best to consult with an insurance professional to help you come up with an informed decision on what life insurance product is best for you.

To give you an idea of the basic life insurance products available, we'll discuss each of the three major life insurance products.

Term insurance.
This kind of insurance is one of the cheapest. It enables one to buy large insurance coverage at lower premium amounts. However, term life insurance provides temporary coverage that you will need to renew regularly. If you survive the term of the insurance, you may find that you need to buy whole life insurance and when you are older, the premiums are also more expensive. You also will not get anything back after the policy ceases to be effective.
Whole life insurance.
This kind of product allows you to accumulate a cash value (which is tax-deferred), which you can loan against or withdraw. Also, as long as premiums are paid, the insurance coverage continues well into your later years. The premiums usually don't change, so if you get the insurance early on, when you are still in good health, you can enjoy premium savings even as you have insurance coverage for the later years. The drawback of a whole life insurance product is that it is comparatively more expensive than term.
Return of premium life insurance.
This is a hybrid of the first two. With this kind of premium, you are covered for a specified number of years. In the event that you die within the coverage period, the insurance will pay your beneficiaries the death benefit. However, if you survive the coverage period, you get a specified amount, usually not lower than the premiums you paid. The advantage to this is that the premiums are mid-ranged (not too high, but not too low). Also, you or your beneficiaries receive a payout, whether you survive the coverage period or not.

The best life insurance will depend on your specific situation. Your financial adviser or life insurance agent is on hand to give you sound advice on what product best fits your needs. They will look at your and your dependents' income and finances - annual expenses, loans, mortgage payments and other debts. The financial advisor will look into who will be left when you pass away.

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