Term Life Insurance Blog

Term, Whole, Or Return Of Premium. Which Life Insurance Is Best?

SmartMoney's recommendation is term life insurance, and I cannot agree with it more. Don't confuse insurance with investment. Let term insurance take care of your insurance needs, and get your investment portfolio in order to get the return you want.

Life insurance comes in three flavors. Term insurance offers plain-vanilla protection at a low cost. Then there's whole life, which has a savings component. A third type, the return of premium, is essentially a hybrid of the first two.

Here at SmartMoney.com, we generally recommend term life, as its low premiums allow consumers to get maximum coverage at little cost. (They can then invest on their own the savings they'll reap by forgoing pricier options.)

But don't just take our word for it. Before you head to an insurance broker's office, you should be familiar with the pros and cons of each policy type. Insurance agents are notorious for their heavy-handed sales tactics. Arming yourself with some knowledge ahead of time is the best way to make sure you wind up with the policy that's right for you.