Ask Terry Questions Whole life insurance

Whole life insurance

By Terry Savage on March 08, 2020 | Insurance & Annuities

Good morning, Both my husband and I are retired with a pension income. We attended a seminar on paying your debt off through a whole life insurance policy. What is your input about this plan?

Terry Says

That was going to be a very expensive seminar if you bit on what they are selling. If you die, all personal unsecured debts die with you. You don’t need insurance to pay them off. And “secured”debt — such as a mortgage — is paid off by the sale of the property.

The ONLY reason to have life insurance is to take care of someone who is depending on your income –your spouse, your children. And when you’re retired, you likely don’t have dependents. Just set some money aside for burial expenses, and you’ll be fine. Retirees don’t need new life insurance and at your age it would be exorbitantly expensive. Stay away from these people!!



a personal
finance question