Would It Be Wise To Have Both Term and Whole Life Insurance Policies?
If you decide to have both a whole life and term life insurance policy at the same time, you can do this. Most people considering this have a whole life policy in place. They may find that they need or want a little more coverage – something short-term. With that in mind, they can get a term policy for a specific amount for a certain period of time.
If you have a term policy and you want to invest it into something long-term such as paying off a mortgage or dealing with estate taxes, you can get a whole life insurance policy that offers a cash value feature.
Remember, a term life insurance policy is going to be less expensive than a whole life insurance policy.
For example, a 30-year-old non-smoker female can purchase a 20-year $750,000 term life policy for around $277 a year. A 30-year-old non-smoker male can purchase the same policy for $320 a year.
A Guaranteed Universal Life insurance policy, however, could cost around $3,200 a year for men and $2,700 for women with costs going even higher for a whole life insurance policy.
The amount of coverage you need to buy is going to be dependent on many mitigating factors – family support, financial obligations, etc. Make sure to choose a policy that best meets your needs and goals.