The argument between term and perm life insurance never ends. On one side you have the buy term invest the difference crowd which include some well known and often questionable TV personalities. Suze Orman and Dave Ramsey are the most notably known. On the other side you have the, "term is only renting your coverage" crowd which includes mostly overpaid whole life insurance agents. So where does the objective truth lie? As usual, somewhere in the middle. What I'm about to explain will allow you have your cake and eat it too regarding your family's life insurance needs.
What is the moderate and simple solution that involves no regret? Buy term and be sure to have the best option available for converting. This should be your objective, simply buying term without the option to convert to permanent later defeats the sentiment of buying coverage in the first place. Think about it, you're buying life insurance for protection from the unknown, but suddenly when it comes to how long you will want coverage you know exactly? It's quite moronic to suddenly know for sure that twenty years is exactly how long you need coverage for, and to even have a backup option available is unnecessary.
The good news? Most term policies have good conversion products. Ideally you should have at least the option to convert to a lifetime universal policy or better yet a competitive whole life policy. SBLI and ING have some of the best conversion products by the way.
To summarize, buy term when you need the coverage then while you still have the ability to do so, convert the coverage to permanent when you're older and still want some coverage. You don't have to covert the full amount of coverage.
Now that you're more educated on this endless debate, have your cake and eat it too. Life insurance is both important enough to have now and has enough value that you should maintain coverage later.
Eric Smith
President
YourLifeSolution.com
Article Source: http://EzineArticles.com/?expert=Eric_X_Smith
