Term Vs. Whole Life Insurance (Life Insurance Explained)

by MOINSBD

Get Term Life Insurance HERE:

In this video I will breakdown Term Life Insurance vs. Whole Life Insurance, to give you an idea of which is best for you.

Life insurance is one of those necessary things in life, because life happens! It’s better to have life insurance and not need it, than need it and not have it.

The fact is, we all eventually need life insurance and this video will hopefully help you decide which is best for you.

Term life insurance provides coverage for a specific amount of time (usually 20-30 yrs). If you or your spouse passes away during this time, your beneficiaries will receive a payout from the policy.

Term life is much more affordable than whole life. Typically this works out to be $7 per month in 20 yr term, vs $100 with whole life cash value.

Term life has no cash value until the death occurs, so itโ€™s not worth anything until you need it, which is fine.

Whole life is a form of permanent life insurance with 3 components:
1. Premiums
2. Death Benefits
3. Cash Value Accumulation (savings aspect)

When you pay your premium a portion is applied to the death benefit and cash value.

The first 5-10 years a majority is applied to the death benefits (cost of insurance) along with fees and commissions.

After this, the cash value will receive a great portion of the premium
Beneficiaries are only entitled to receive the death benefit portion of the policy when you die!!

You have no choice in how the life insurance company applies the premium you pay.

You can cash in or surrender your policy at any time to get your money out, but you lose the insurance!

Get Term Life Insurance HERE:

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24 comments

Marko - WhiteBoard Finance January 6, 2021 - 5:33 PM

Get Term Life Insurance HERE: https://whiteboardfinance.com/go/havenlife

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Bryon Kibildis August 23, 2021 - 1:57 AM

There is a lot of bad info in this video. Is the author even licensed? Cost vs Price is a huge distinction. This reeks of a dave Ramsey disciple.

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Rachel Abena August 24, 2021 - 1:07 AM

This was sooo easy to understand. Thank you sooo much!

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Born Again August 25, 2021 - 6:48 PM

Life Insurance = Jesus Christ

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Bianca J Jeanpierre Romero August 25, 2021 - 8:04 PM

3:29 the video starts.. your welcome.

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Young Visionary Ent. August 25, 2021 - 9:17 PM

Completely disagree with this breakdown, im an insurance agent so im very familiar with life insurance. What he fails to mention is that term only pays out 3% of the time because it expires and is more expensive to renew, so people usually cancel eventually. 97% of the time you pay into a term policy and never get payed out. Whole life is 100% guaranteed to pay out. You can bank on whole life because its guaranteed to come back to your beneficiary. He is right about the cash value but whats more important is that your family is guarnteed a pay out. Term is a waiste of money and rarely actually pays out! Keep that in mind people.

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Weed Hopper August 27, 2021 - 4:23 PM

Insurance companies are great at doing one thing selling policies and collecting premiums. Many companies were involved in a class action lawsuit from misrepresenting whole life insurance policies in the late 80s early 90s. They were sold as that you pay into them for only 10 years and your covered for life. Not true. One company, State Farm was involved in insurance fraud regarding home owners in New Orleans whose homes were destroyed by Hurricane Katrina. State Farm altered their own inspectors reports, eliminating wind damage which put them on the hook for paying out claims. They changed the reports to claim that damage was solely caused by water put the payout and claim on the government. They were sued by both the government and homeowners and justifiably lost, especially when their own investigators testified their reports had been altered. They appealed and lost. I can point out other examples of insurance companies involved in fraud who were sued and lost. I don't like or trust any of them even though you're forced to use them.

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Petros Pius August 28, 2021 - 4:33 AM

So if I buy a 30-year term and I die at age 61 I get zero but if I buy a whole life and die age 61 my family gets $500,000 tax free death benefit I would trade $25,000 for $500,000 any day of the week and twice on Sundays your scenario if you die at 61 your family gets the 52,000 that has accumulated in your investment in my scenario if I die at 61 my family gets 500,000 tax-free death benefit I think that's a pretty good trade off. I think term life is appropriate in some circumstances and permanent life insurance is appropriate In certain circumstances… you don't buy insurance for great financial if you have to work past 60 which most people do you're still generating an income that your family depends on and age 60 in your words term insurance is way too expensive.

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MANSUUR ABDULAZIZ August 28, 2021 - 8:47 AM

THANX SOO VERY MUCH ๐Ÿ˜Š

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Mesquite Tejas August 28, 2021 - 10:22 AM

Ok I am a slow learner.And I am still confused.. But Im going to watch a few more times and I' m sure It will register..Thank you for this info.

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ice9 August 28, 2021 - 7:36 PM

Thanks for the home security info., but I don't need it. I have attack cats! ; )

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Spring Roll August 30, 2021 - 1:45 PM

Man, I am confuse do I really need life insurance? I have a wife and two kids; 6 year old and 3 year old. As for myself I am 44 and work for the government; my wife is 34 and she works at home. What life insurance is the best?

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Pamela Castrey August 31, 2021 - 3:41 AM

Whole life gives cash value to the beneficiary plus death benefit. Universal life keeps cash value with company. I disagree with your presentation. Term description is correct. Check this outand you did not talk about whole life with dividends.

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anthony pinto September 1, 2021 - 4:09 AM

Im a financial advisor and you told the truth
Thank you for your honesty

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Mister Sir September 2, 2021 - 9:35 PM

Folks a lot of this information varries from each insurance company. Always read up on what ever policy you a looking into from the company

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Kate Reed September 4, 2021 - 5:09 AM

Trash

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Raymond Villarasa September 5, 2021 - 11:28 PM

What is non taxable and taxable? What you said about the 100k cash value. Please. Thank you

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OFFICIAL PURE Entertainment September 6, 2021 - 7:28 PM

Thank you Iโ€™ll save my life Inturance my self!

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Jennifer Lucero September 7, 2021 - 5:15 AM

When you make videos on financial advice, make sure to stay unbiased otherwise you might come off as stupid

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Edward Dixon September 7, 2021 - 3:52 PM

Wow thank you thank you thank you

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Kunal Amin September 9, 2021 - 9:26 PM

What happens to the death benefit if i pay premium from cash value?

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David Padilla September 11, 2021 - 7:48 PM

According to a Penn State University study, 99 percent of all term policies never pay out a claim. Proponents of term life say this is because most people let their policies lapse.

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Hae Kim September 11, 2021 - 10:24 PM

Thank you.
It helped me alot.

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Daria Won September 13, 2021 - 4:51 PM

I really found this video informative and smashed your like button and subscribed to your channel. Was wondering if you had a video between universal life vs whole life insurance.

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