I'm here to tell you there is no right or wrong answer, only shades of gray determined completely by age, income and a few other factors. My professional opinion is that a combination of the two for most people will work well.
Let's start with the term. For those who start in life give term cover the costs you. If you are young is extremely affordable and it is designed to cover your income and expenses in a sudden death. As the name suggests it is temporary coverage in ten, twenty or thirty years expires. It is a great value for the young, healthy individual with little discretionary income.
Life is different, because the premiums are much higher and get nearly the coverage for the cost. The downside is that the premium goes up with age and so long, how to pay your premium, you have coverage. The over payment goes towards a cash account and with a good company, receive dividends, to increase the cash but grow more particularly the death benefit.
My advice is not to insurance as an investment, look at insurance insurance consider. Purchase term if you are boy from exactly think reason to worry about your family if you are suddenly. I would also suggest a second permanent purchasing policy. My preference is life, because it is very stable and the death benefit while you age is growing. Owning a whole life policy for thirty years feel great to know there is had all the time to grow. I dont care if the internal rate is 3-4%, steuerbegünstigt growing something at that rate in an account looks fantastic, not to mention of the death benefit to the original face double is grown. Second is a much more expensive proposition to extend your term and you may be not inclined to get the same amount of coverage. Their whole life policy act as a good addition to this point.
I sell insurance for people in their 60s and even 70. At this point, the best deal for you is a whole life policy which pays dividends not even. Premiums are steep and death benefits are usually 5, 10 or 15 thousand dollars. Also you can qualify in this age not even. Guarantee issue coverage as seen on TV, crap! Need I say more?
A person who get a lifetime purchasing policy in the age of thirty years ten times the coverage and have to see it grow the rest of your life. You must paste not worrying about their families with final expenses because you already there previous ensured years.
The decision you make based on intelligent design, do a "rate of return". Do you not stick that is all your eggs in one basket the Council here. I am sure that most insurance professionals can agree.
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