Well, uh, No! I know I’ve been talking for months about the fact that term life insurance seems to have finally hit the skids on it’s nearly 15 year downward trend in prices. And I’ve talked about this being probably the best time to buy term life insurance or externally guaranteed universal life insurance because prices have either gone up or probably will go up in the near future.
But no where in anything I’ve said have I noted that it might be a good time to re think the difference between term insurance and cash value policies such as whole life or traditional universal life. Term insurance still remains the most logical and most appropriate way for 95% of life insurance needs to be handled. Probably, honestly, more now than ever.
Probably one of the most compelling reasons is price. How about a show of hands for all of those who have more disposable income now than, say, two years ago? Cash value policies have a higher cost per thousand dollars worth of life insurance coverage, so, if you talk yourself into going down that path you will either need to scale up your budget or scale back on the amount of life insurance. I’m not real big on those options since it’s my opinion that the amount of insurance should be decided by a family’s needs, not by an artificially inflated price of a cash value product. And I am Dave Ramsey dead set against messing up my budget.
So, losing its’ edge? Not by a long shot. Term insurance is and will likely always be the most cost effective way and the most appropriate way for families and businesses to meet their life insurance needs.
Bottom line. There truly is no time like the present to review your portfolio and bring it up to date while there is still term insurance available at the lowest cost in history. Beats putting it off and hearing next year about what you could have save this year.