There are a multitude of ways to buy life insurance, and lots of options on how to invest your policy if you get a “whole life” plan. There is no “one size fits all” strategy but if you are really just need a certain amount of coverage, and your goal is minimizing costs each month, then keep it simple.
Typically you pay the least by sticking with a basic policy from a company or agent that specializes in that type of insurance. It gets a lot more complicated, and possibly more costly, when you start bundling life insurance with other purchases (like a mortgage) or picking a complex hybrid or alternative option.
For example, the monthly outlay for term life insurance can be a lot less than a comparable whole life policy; you give up the guaranteed payout in the end, but you meet your initial goal of minimizing expenses.
Consult your tax advisor or ask your agent to run different plans to make sure you pick the right one for you.
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A LOZO expert posted this tip. |