Reader’s Question:

I’m a systems analyst working for a software company in Buffalo New York NY. I’ve read about whole life and term insurance. Which one should I get?

Alvin

Buffalo, NY

Here’s a bit of history. In the beginning there used to be just term insurance, Alvin. Convenient, isn’t it?

People then bought a life insurance policy in Buffalo New York NY and other states for a fixed term, say 10 years. So if Mr. X purchased his life insurance policy on February 14, 1960, the same expired on February 14, 1970. Now, the sad part: when Mr. X died on February 15, 1970 his family got nothing because his life insurance policy was no longer in force. The fact that Mr. X paid premiums on it every Valentine’s Day for the past ten years didn’t matter at all.

This situation caused dissatisfaction among the people everywhere, including Buffalo New York NY. To avoid losing business, life insurance companies told their actuaries (the people who compute life insurance premiums) to design a product that made sense to the public. The result was whole life insurance.

A whole life insurance policy that you shall get in Buffalo New York NY covers you for a lifetime. It gradually accumulates savings in the form of “cash value”. However, it costs much higher than a term life insurance policy. Fill in the form on this page for information on life insurance policy prices.

I suggest that you see a life insurance professional in Buffalo New York NY for more details.