My answer to Does it make sense to buy term and whole life insurance?
Answer by Joy A. Adams:
I hope I am interpreting the question correctly – you are asking if it is better to get term AND permanent insurance? Not – term OR permanent insurance? If you are implying the first option, then you are creating a perfect solution to ALL your insurance needs. This is usually what I recommend to my clients when affordability is not an issue. The term insurance I would add on to the permanent life insurance as a rider.
The term insurance takes care of temporary insurance situations such as; mortgage protection, high debt load, dependency period and everything else that require insurance coverage for a specific period.
Whole life insurance on the other hand – will provide you with permanent insurance to cover final expenses, estate taxes, or if you simply want to create a legacy for your family.
The key to this combination is at renewal of the term insurance. You will have the option of dropping the term insurance if your situation no longer requires it and more importantly you will keep the permanent insurance at a lower premium – with a build up of cash values.
Personally, the use of both term and whole life insurance is the optimal use of life insurance!
Hope this was helpful.
