Which life insurance is better?

Which life insurance is better? Assume husband and wife are 30 years old

A) Whole life insurance
Husband: $75,000 coverage
Wife: $75,000 coverage
Total coverage: $150,000
Monthly premium: $113/month

B) 30 year term insurance
Husband: $250,000
Wife: $250,000
Total coverage: $500,000
Monthly premium: $65/month

If they invest the difference of $48/month for 30 years,
@ 0% return: $17,280
@ 4% return: $33,425.42
@ 8% return: $72,012.17
@ 12% return: $169,435.86

Would you go with A or B?

Other Answers (7)

B of course.

Life insurance can%26#039;t protect your life, but it can replace your income. The problem is that most people don%26#039;t have lots of money saved and if they provide more than 50% of the income to the family, that loss of income would be devastating if the person had no life insurance. As the person gets older, the need for life insurance declines as the person is nearing retirement. By buying term and investing the difference, you are protecting the family%26#039;s income and at the same time, building wealth for retirement. 29% 2 Votes 14% 1 Vote
Depends on the situation, in most (re: 95% of the time), answer B will be correct. B becomes a better value if the policy is guaranteed renewable and automatically renews to a level term product in case they wish to keep their coverage. 0% 0 Votes
The answer is B. Problem is most insurance agents will not tell you that because they earn a lot more money on A.

B is in the best interest of the customer and provides the most insurance for your dollar. 0% 0 Votes
Well, it%26#039;s IMPOSSIBLE to know, because you didn%26#039;t state the GOAL that you want the insurance to acheive!!

First define the goal, THEN pick the product(s). agent, 21+ years 14% 1 Vote
Your info is incomplete. In any event, the %26quot;correct%26quot; decision depends on many other financial and family factors. 0% 0 Votes

Answer Over!
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