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The type of life insurance a person has can make a big difference.

Key points

  • My husband has a life insurance policy with a death benefit of $1 million.
  • I appreciate you making sure our family is taken care of if anything happens to you.
  • I’m still not happy with the coverage details, because it’s a whole life policy.

My husband has had a large life insurance policy since we got married. I will receive the death benefit if something happens. Since the policy provides $1 million in coverage, I have peace of mind knowing that our family, including our children, will be financially supported in the event of a tragedy.

As much as I appreciate my husband’s efforts to make sure our family is okay, I’m actually not thrilled with the coverage he has. And there is a very important reason why that is the case.

This Is Why I Don’t Like My Husband’s Life Insurance Policy

The big reason I don’t like my husband’s life insurance policy is because of the type of policy he chose. Specifically, he has a whole life policy. A whole life policy provides coverage indefinitely, as opposed to a term life policy which provides coverage for a limited period of time, such as 20 or 30 years.

My husband did not buy a whole life policy because we need lifetime coverage. We don’t, as we are diligently saving for retirement and our children’s education, and one day no one will depend on their income and we will have all our debts paid off, so a death benefit will not be necessary to help. our family in the distant future. If we needed ongoing support then it would be a different story as whole life policies can make sense in this situation.

Instead, my husband bought the whole life policy because he thinks doing so is a good way to invest. Whole life policies have an investment component, and some of the money is accessible tax-free, so he believes buying whole life coverage is a good way to prepare for retirement.

The problem, however, is that I know that whole life policies are much more expensive than term life coverage, and that it’s usually possible to get a better ROI from other investments than life insurance.

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We ended up paying a lot more money for his whole life policy than we would if you had a comparable term life policy that offered the same death benefit but paid only if you died at a younger age when we needed the money. And we’ll end up with less cash over time than if we bought the cheapest term life policy and invested the difference.

Unfortunately, my husband will not be convinced of the downsides of his policy and it is not worth a big money fight as we tend to be on the same page about many other financial decisions.

Buying the right type of insurance offers protection with affordable premiums

Ultimately, it is important to have the protection of life insurance. Ideally, you want to buy the right type of coverage that makes sense, but it may be better to have the “wrong” coverage rather than none, which could create disaster for loved ones.

Still, a term life policy is the best option for most people because of the lower costs. Anyone considering whole life insurance should be sure to consider the drawbacks before making their choice.

Our picks for the best life insurance companies

Life insurance is essential if you have people who depend on you. We’ve reviewed the options and developed a best-in-class list for life insurance coverage. this guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.