How does a person decide whether to purchase term insurance or cash value insurance?

Question

answer questio IN complete sentence.

Answer 1

Hi Elizabeth:

It will depend on whether the person wants to accumulate savings (life a savings account) in addition to buying life insurance or just life insurance.

If you want to accumulate savings in addition to buying life insurance you would purchase Whole Life/Cash Value insurance whereby a portion of every premium you pay would go building up cash value in the policy. If you just want to buy life insurance with no cash accumulation, you would purchase term insurance.

A lot of people will buy Whole Life/Cash Value insurance to save up for college education or for retirement income.

Hope this helps!