dazed and confused asked:
I have a 4 yr old son and i want to get life insurance. what is the best life insurance co. and what kind – term or whole? i keep hearing whole life insurance will build cash value. does this mean i can get cash out of it when i decide to cancel the life insurance?
Answered by “Joe”
There are several companies that you can use to get insurance for your young son. I have insurance through Gerber Life, but there are other companies that are just as good. It kind of depends on what it is you want for your child. Do you just want straight life insurance coverage or are you interested in building a cash value for his future?
Also, the type of life insurance that builds cash value is called Whole Life. The name is fitting because it’s designed to protect you for your whole life or until you reach the age of 100, whichever comes first.
Whole Life insurance builds a cash value over time. Part of the premium payment you make each month goes toward insurance and the rest goes into an account that will grow over the years. Eventually, you’ll be able to borrow against that cash value, if you choose to. However, you will have to repay the loan WITH interest. You can’t just “cash out” and say you don’t want the coverage anymore.
Term Life is designed to provide coverage over a specific period of time. There are several different types of term life insurance to choose from so you’d have to do some research to find out your own needs. You can choose from policies like 10 Year, 20 Year and 30 Year Term plans, depending on your needs.
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