Enter some smart people who realized what was happening, put their thinking caps on and figured out that it would be easier to sell term life insurance to the public rather
than a whole life insurance policy because the term policy was cheaper.
It is even more flexible
than a whole life insurance policy in some ways in that the death benefit, premium and savings element can be changed at any time to fit the desires and financial situation of the policy owner.
To be able to claim that Investing the «Rest» is
better than whole life insurance policies - you should be able to point to what types of investments routinely beat whole life insurance dividends and their plans.
Variable universal life insurance policies and even traditional universal life insurance policies may provide an even higher rate of
return than a whole life insurance policy, but they could also provide a lower rate of return.
Term Life Insurance policies are considerably less expensive
than Whole Life insurance policy.
A good rule of thumb in this case is to understand that, generally, Universal Life insurance is going to cost more than term life insurance and will be less
than a whole life insurance policy.
In general, term life insurance policies are less expensive
than whole life insurance policies.
For any budget, a term policy is usually less expensive
than a whole life insurance policy.
Since the insurer guarantees a lower interest rate and offers a range of premiums, universal life insurance policies are typically less expensive
than whole life insurance policies.
However, it is considered to be more «flexible»
than a whole life insurance policy.
If the cash value ever reaches zero due to investment failures or withdrawal of cash by the policyholder, the policy is cancelled, so types of universal life insurance policies are less permanent
than whole life insurance policies.
Term life insurance is less expensive
than a whole life insurance policy, but it does not have the same advantages as a permanent policy has, either.
While being pricier than a typical term life insurance policy, it is much less expensive
than a whole life insurance policy and has similar advantages.
If you have a term life insurance policy that you have renewed more than once, it is more than likely a good deal more expensive
than a whole life insurance policy would have been.