Here's Why You Should Avoid Whole Life Insurance Like the Plague
You'll often hear that if you have people in your life who depend on you financially, or who stand to suffer financially in the event of your untimely passing, then having a life insurance policy is a must. And that's solid advice. But not all life insurance is created equal, and if you're in the market for a policy, it pays to consider term life insurance rather than whole life. Though the latter can be a reasonable choice for some people, for most, signing up for whole life insurance is a move you're more likely to regret.
Let's start by laying out the key differences between a term life and a whole life policy. Term life insurance, as the name implies, covers you for a specific period of time -- its term. Thirty years is a common duration. During that time, you pay your premiums (monthly, quarterly, or annually, depending on the policy you have), and in exchange, your heirs are guaranteed a predetermined death benefit should you pass away.
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Source Fool.com
