Term or Whole Life Which is Right for You?

Written by Aaron Pinkston, Thu, Jan 21 2010

This is about life insurance metaphors, custom life insurance quotes

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Topics

Term or whole life insurance seems like an ancient debate that will go on for centuries. At least it is true people have been debating which is the wisest choice since before I ever started in life insurance. But I think I figured out the answer for you.

The answer to the age-old question of what type of life insurance is right for you? I don’t know, but it doesn’t matter.

No really, that was it. “I don’t know and it doesn’t matter.” But the good news is now that it doesn’t matter, you can get on with your life.

Building fences – a life insurance analogy

To make my point, I want to tell you the story about a young couple who decided they need a fence around their backyard. See, they just got a puppy and they want it to be able to play free outside while they are at work.

They have a lot of options, but they know they should hire a contractor to do it because the work is too much for them, they don’t want to hassle with the permits, and they are concerned about the quality of the craftsmanship.

The young couple gets the names of a few local contractors who all seem qualified to do the work. They need to decide who would be the best one to hire. They need a way to narrow the field to make their choices easier. After all, this is an expensive fence they hope will last for years.

The couple determines the best route is to ask each contractor a simple question: “Would you build my fence using a circular saw or a jigsaw?”

The point

Yes, the type of saw a contractor would use has certain technical implications on the type of fence they would get. But the couple should instead focus on what’s important to them:

Will the fence meet their expectations?
Will the fence be sturdy and high quality?
How much will it cost to build the fence?
How long will it take before their puppy will be able to play in the backyard?

By focusing on a technical question that has to do with how the contractors will build the fence, the couple did not come that much closer to the answers that really matter. And who knows, maybe one contractor planned on using both types of saws.

What fences have to do with life insurance

So instead of focusing on the tools of the trade and technical features, focus instead on what you expect and what is important to you in your life insurance policy. By staying steadfast on your and your family’s needs, you could not be swayed by all the shop-talk and jargon.

In the end, it is useful to be able to compare life policies side-by-side without worrying about features and internal mechanisms that don’t matter to you. The tools don’t matter, but getting the job done right does matter. That’s why Clarifinancial got rid of all the nonsense.

So next time you see a late night TV host giving a passionate speech about which type of life policy is right for you, or see an article in Fancy Pants Financial Magazine titled “The 5 Things You Absolutely Must Know Choosing the Right Life Insurance Policy,” relax.... They are stroking their ego to catch eyeballs and sell advertising.

Focus on your life insurance needs, not the technical features, and choosing the right policy for you will be much easier.