(There’s another issue I thought of: Like most life insurance policies, the ones I bought are good only for 20 years. There is a pretty good chance that I will live for those 20 years but in the meantime develop a serious health condition which makes it almost impossible to buy more insurance. What then?)
That’s a feature, not a bug, of term life insurance. That’s the tradeoff you’re making to get coverage now at a cheap rate. But of course, the option value exists on both sides—so if you want to lock in relatively lower rates, well, that’s why whole life insurance exists.
That’s a feature, not a bug, of term life insurance. That’s the tradeoff you’re making to get coverage now at a cheap rate. But of course, the option value exists on both sides—so if you want to lock in relatively lower rates, well, that’s why whole life insurance exists.
Yes, good point. I actually looked into getting whole life insurance but the policies contained so many bells, whistles, and other confusions that I put it all on hold until I had bought some term insurance. Maybe I will look into that again.
Of course if I were disciplined, it would probably make sense to just “buy term and invest the difference” for the next 30 years.
That’s a feature, not a bug, of term life insurance. That’s the tradeoff you’re making to get coverage now at a cheap rate. But of course, the option value exists on both sides—so if you want to lock in relatively lower rates, well, that’s why whole life insurance exists.
Yes, good point. I actually looked into getting whole life insurance but the policies contained so many bells, whistles, and other confusions that I put it all on hold until I had bought some term insurance. Maybe I will look into that again.
Of course if I were disciplined, it would probably make sense to just “buy term and invest the difference” for the next 30 years.