Select term 20 or universal life option 1?

  • by Bond
  • Aug 12,2017
  • 5 answers

I was thinking the other day that i had 2 life insurance. I went through my files and did find 2 life insurance. One is a select term 20 of 500,000 basic plan amount and the other is universal life option 1 with 100,000 basic plan amount. I was reading online that the select term won t last long since it s only for 20 years but the universal is permanent and more flexible but just expensive. My question is should i keep select term or universal? Im thinking of universal since it seems to be better than select term. What s your opinion?


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Insurance Answers (5)

lucy 4 months ago

https://termlife2go.com/best-life-insura...
Most people buy insurance based on their current and future needs. When young, may need more as lost income for your surviving spouse, to cover the mortgage or if children, could be for future college expenses.
But, when children are adults, then may need only enough income to help the surviving spouse, for your lost income. The problem with term is that when it expires, need to buy another policy, and (if) you kept the same amount could be double/triple what you are paying now, since the risk that you “may” die during (each) new term is greater.
The site I attached gave some examples of different term policies by age and the rates. In most cases up to 60 is reasonable, but then gets much more expensive, since you are now a greater risk that the insurance may have to pay the policy benefit.
Another problem with term insurance is (if) you get sick or disabled, when it expires, then may find that (NO) insurance will want to insure you.
That is the risk with term, since if healthy, can buy. But if later become sick, then are limited and the price could be prohibited.

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JC smith 4 months ago

Idk

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Hakeem 4 months ago

Go with the universal. It lasts for life and the fact that's it's universal should also mean that it's flexible to your needs. For instance, if the payment can be adjusted if it's too much. I'd also look into adjusting the plan amount. You can get a much larger payout than that on universal life policies.

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StephenWeinstein 4 months ago

The first question is whether you should have any life insurance. Not everyone needs life insurance.
If the reason you need life insurance is to provide for your children while they are still children, then term insurance is best, if the term lasts until they grow up and get their own jobs, and you no longer need life insurance. Also, you need a lot.
If the reason you need it is to cover funeral expenses, then permanent (universal or whole life) is better, but you only need a little bit (maybe $10,000 as a death benefit).
If the reason you think that you need it is almost anything else, then you probably don't need it.

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Insurance Pickle.com 4 months ago

That is a common set up. A cash value permanent policy that you can keep beyond the length of time that term will last. AND, a term policy so you can affordably get up to the amount of coverage you should likely have which is ~10X-25X your income -- depending on what you're trying to accomplish.
However, more people would typically gravitate towards a 30 year policy. So, to answer your question, why not both?

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