It is very natural and almost always true in most cases that people tend to think of insurance as an expense. Even while buying insurance, the first thing anybody would like to know is ways to cut back to minimize their costs. It is a widely prevalent belief and true in some cases that term insurance is a total money-saver. However, like anything else in the world what works for someone else might not actually be the best thing for you. And experts argue that if you invest your money wisely and pick up the right plan, whole life insurance can be the best thing that happened to you since sliced bread.
The thing with term insurance is that you need to judge the cost of premiums and more importantly the tax consequences on your other investments and savings, to actually judge whether term insurance is the right way to go, for you. The typical mindset is that one does not require life insurance after retirement, when kids are out of college and the mortgage is paid, but you might change your mind about that once you understand the living benefits that come with life insurance.
If you have investments in real estate, you should be looking at insurance that covers your federal and estate tax. And even if you do not have any estate tax, whole life could be a great investment vehicle offering the kind of returns on your money that you are unlikely to see anywhere else. Other than the decent rate of return, coverage for entire life is huge value. And even the returns is completely independent of the stock market and your returns are not dependent on the turbulent financial ups and downs.
If you pick out the right policy, then you can ensure that all your death benefits are passed on to your beneficiaries with the additional weight of income or estate tax on them.
If you are saving money month and the rate of return is less than 8-9%, then you should be thinking permanent policy and in turn, a whole life insurance policy. Speak to the right people and get a policy that works for you and your financial situation. The kind of returns and benefits you get really make it worth it.