How can I pay my Globe Life Insurance Premiums online?

Pay the Extra Premiums for Whole Life Insurance Quotes?

• I currently have a term life insurance policy and am considering converting it to a whole life policy. I'm married with no kids. My wife has her own life insurance and retirements already in place. We are not going to have children. The main reason I was interested in the Whole Life was the investing portion to supplement my current mutual fund retirement. Should I pay the extra premiums for the Whole life or should I keep the term life and put the extra money into a Roth IRA? Any advice would be great. Thank you

• Answer:

  Whole life insurance is not an investment option. If you examine this logically, why is that only life insurance has a savings program and no other types of insurance has it? The main reason is for insurance company to raise equity so that it can pay future death claims. This is how a whole life insurance policy works. Your premiums are paid for 2 products: The life insurance portion and the savings portion. During the first 10 years of the policy, the rate on your savings is at a negative. Why? Its because during the first 2 years of the policy, no savings is accumulated. If you ever wanted to withdraw money from your policy, you have to borrow it and pay loan interest of anywhere between 5-8%. Don't you find it odd that when you take money out, that you have to pay it back? When you pay it back, the interest portion of your payment does not go back into your savings. It goes directly to the insurance company as profits. If you die while there's a balance due on the loan, this amount will be deducted from the face amount of the policy. For example, if you have $100,000 in coverage and you have $2000 loan to pay and you die, $98,000 will be paid out to your beneficiary. If you die without withdrawing any money from the policy, all the savings in the policy goes to the insurance company. Your beneficiary will get the face amount of the policy, but not the savings. You can choose to include the savings as part of the death benefit, but it will cost you more money. Whole life insurance is very expensive when compare to term insurance. On average, a 30 year old with $100,000 coverage will pay about $1000/year on premiums. You should only consider getting life insurance if you have a need for it. For example, if you have a mortgage and other debts to pay, then you should get life insurance. But you don't need life insurance forever as your financial obligations decrease over time. Term insurance is the perfect fit for this situation. My advice: Stick with term insurance and get another quote for a 20 year term policy. Rates for life insurance has decrease over the years so it might be cheaper to get another term policy. Always keep your savings separate from life insurance. Life insurance purpose is to replace your income in the event of your death, not as a way to build savings.