https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Tue, 05 May 2026 19:28:47 +0000 https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1929349 Tue, 04 Nov 2014 14:32:22 +0000 mrsjyw 1929349@https://boards.hellobee.com/ <p>We have a mix of Term and Whole Life insurance. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1929345 Tue, 04 Nov 2014 14:31:40 +0000 Raindrop 1929345@https://boards.hellobee.com/ <p>I finally got around to asking my husband if his universal life insurance paid out just the policy or the policy and cash value. He says his happens to be policy + cash value but there universal life policies that only pay out the policy which he thinks is dumb but believes they are "cheaper" than policies that pay out the policy + cash. The way you can know which one you have (if you have a universal life policy) is to look at your yearly statement and they will have list the death benefits which tells you the pay out if the person were to die soon.</p> <p>So if you go with universal just make sure to watch out for this. :) </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1917615 Mon, 27 Oct 2014 13:26:45 +0000 Raindrop 1917615@https://boards.hellobee.com/ <p>I agree with almost everything @mrsloin said BUT I can't confirm or deny this statement "With universal, my understanding is that your family gets the death benefit for as long as you keep the policy, but any cash value is kept by the company. " She could be right about this but I actually don't know about that detail... I will have to ask my husband if I remember. I will say that our cash value is less than our actual policy and that's usually the case. It would totally suck if you lost the cash value of a policy especially if someone was using it as an investment tool.</p> <p>Also along with @mrsloin's thoughts, this is why I suggested trying out a few advisers. My FIL is actually an adviser but he is a big pusher of universal because he gets a big commission from it - very big like in the 10s of thousands for each one he pushes I believe. Though I believe he truly believes it's a great thing... it always feels like he's blindly thinks it's a great thing for everyone when truly that is not always the case. In fact he so believes in universal life that he lost ties with families that are tired of him trying to push it on them.</p> <p>I hope this information helps. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1915277 Fri, 24 Oct 2014 22:09:17 +0000 Mrs. Lion 1915277@https://boards.hellobee.com/ <p>@FliegepilzHut: honestly I think most people buy it and don't really know what they are buying. They assume that it's a good thing to have life insurance forever (where my view is you only need life insurance until you have enough other investments that your family is fine if something happens to you and your home is paid for. When we are 60 and have a solid retirement account, a paid for home, and kids who are grown, we no longer need life insurance). I think people also figure they can use their insurance to leave an inheritance, but in reality if you just take the difference between the cost of term and universal invest it yourself you have a much more stable investment that you control, and that your family gets to keep. With universal, my understanding is that your family gets the death benefit for as long as you keep the policy, but any cash value is kept by the company. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1915273 Fri, 24 Oct 2014 21:57:52 +0000 FliegepilzHut 1915273@https://boards.hellobee.com/ <p>@Mrs. Lion: I appreciate the input! Is it different if the death benefit applies indefinitely, lifelong? Or is Universal insurance just an investment strategy for most people? </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1914599 Fri, 24 Oct 2014 11:25:56 +0000 Mrs. Lion 1914599@https://boards.hellobee.com/ <p>I didn't read all the comments so forgive me if this is repetitive...but no no no no to universal life. It is better to buy term on your own outside of your employer, for exactly the reason you stated. If you get sick and have to leave your job, you may not be eligible to apply for a new policy, so you lose your insurance. Even if you lack the discipline to save on your own, you can set up an automatic draft and draft it into a mutual fund, which is just as hands off. You are a million times better off that way, since you have the ability to control your investment when you decide you want to. When you die, universal life companies keep the cash value you have "invested" and only pay out the death benefit. Plus, the cost for universal is astronomical compared to the same term insurance. </p> <p>It is absolutely insane to me that these companies even exist. But the people who sell them get commission based off the premium you pay, so their commission checks are a lot bigger if they sell you universal vs term, since the premiums for term are a lot less (like literally 20x less). </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1914507 Fri, 24 Oct 2014 10:41:23 +0000 FliegepilzHut 1914507@https://boards.hellobee.com/ <p>@Raindrop: @LBee: Thank you! I think talking with a financial advisor is an excellent idea. Do you have a firm you would strongly recommend? And I need to make ABSOLUTELY certain that my student loans will be forgiven in the event of death. :meh: </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911366 Wed, 22 Oct 2014 15:51:12 +0000 LBee 1911366@https://boards.hellobee.com/ <p>@Espion: Boo! Stupid Texas. Thought I could maybe save you some insurance premiums by letting you lower your coverage. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911360 Wed, 22 Oct 2014 15:47:38 +0000 Espion 1911360@https://boards.hellobee.com/ <p>@LBee: I thought student loans were the only debt that wasn't forgiven. But reading that again, I see that it is just federal loans that are forgiven. (Which doesn't apply to me. I have really low interest rates, but mucho loans. State funded professional schools in Texas increased tuition by 300% between my second and third year.) </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911345 Wed, 22 Oct 2014 15:38:03 +0000 LBee 1911345@https://boards.hellobee.com/ <p>@Espion: I just thought I would mention that, assuming you don't have private student loan debt, your student loans are forgiven at your death. </p> <p>@FliegepilzHut: It's definitely a bummer conversation :sad: - as PP have mentioned, I would recommend seeking the advice of a financial advisor. I am a Certified Financial Planner, but since you aren't a client and I don't know your full situation, I don't feel comfortable advising you. In general, I almost always recommend term insurance over universal life, but insurance ins't always that simple. With that said, my best advice would be to seek out a Certified Financial Planner (CFP). They should offer a free consultation and many even do free financial plans. I would recommend a fee-only practice, but that's just my opinion.</p> <p>ETA: Please feel free to wall me with any questions! </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911322 Wed, 22 Oct 2014 15:18:48 +0000 AmandaB8 1911322@https://boards.hellobee.com/ <p>DH has term, which will cover his student loans and te mortgage. I only have a small policy through work - it will only cover my funeral. I need to get term added in though. I'm terrified though - I have horribly high blood pressure. :\ </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911135 Wed, 22 Oct 2014 13:26:42 +0000 NeekieRose 1911135@https://boards.hellobee.com/ <p>We have both. DH inherited some money when his mom died and we kinda "inherited" his parents financial advisor who advised us to get both. To be honest, I didn't really understand all that went into it, but supposedly it was the thing we were supposed to do. </p> <p>This reminds me that the premiums are due in a couple months. Ugh. Not looking forward to that. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911111 Wed, 22 Oct 2014 13:11:22 +0000 smocks 1911111@https://boards.hellobee.com/ <p>We need to get Term, however I signed up for Universal for me &amp; my DH after we had DD1 bc it was cheap through my employer and it was also portable. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1911106 Wed, 22 Oct 2014 13:07:56 +0000 Raindrop 1911106@https://boards.hellobee.com/ <p>@FliegepilzHut: I think talking about finances is tough no matter who you talk about it. Even though DH and I are on the same page about a lot of things we still have some different views about how to spend the money we have. </p> <p> Is it possible to talk to a financial adviser? I would also recommend talking to more than one because sometimes an adviser has an agenda or their personality doesn't mesh with you guys but if you find one that is good and can figure out compromises and fill in the gaps of knowledge that would help a lot. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1910253 Wed, 22 Oct 2014 00:18:02 +0000 youboots 1910253@https://boards.hellobee.com/ <p>We got life insurance about 7 years ago. Matt had a seizure and passed out in the bathtub. He hit his head and had the shower curtain over his face. Luckily I heard him fall and pulled the plastic from his mouth. He was in his early/mid twenties. We already had a house and mortgage. It was very scary and make me realize we both needed the minimum amount to pay off our house so the surviving spouse would not risk losing the house. He got term and some whole life as a supplemental investment. I just have term. We are going to revisit soon and increase with baby #1 coming next year. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1910228 Tue, 21 Oct 2014 23:18:31 +0000 Espion 1910228@https://boards.hellobee.com/ <p>@FliegepilzHut: I'm going to go against the grain and say universal. Hopefully I live longer than 30 more years, and I can lock in a rate right now. It is important to me to make sure my family is covered for all of my student loan debt and the mortgage since I'm the primary breadwinner. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1910205 Tue, 21 Oct 2014 22:40:33 +0000 Jess1483 1910205@https://boards.hellobee.com/ <p>When our son was born, we got both term and life, in some weird combination that means we get a low long-term rate but also term coverage for 20-some years. We also started a policy for DS. That way if he develops a major health problem or something, his rate will still stay super low. Don't know if it was the right thing to do, but there it is! </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1910128 Tue, 21 Oct 2014 21:19:14 +0000 FliegepilzHut 1910128@https://boards.hellobee.com/ <p>Has anyone tried to discuss this with their spouse recently? What a bummer conversation... </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908102 Mon, 20 Oct 2014 15:44:46 +0000 MaryM 1908102@https://boards.hellobee.com/ <p>Honestly, I forget about it until I get the bill in December and see it's still CCed to my father (who died five years ago) and realize I still haven't updated my beneficiary! </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908099 Mon, 20 Oct 2014 15:43:58 +0000 FliegepilzHut 1908099@https://boards.hellobee.com/ <p>@Mrs. Yoyo: Ha! Thank you. That makes a lot of sense, actually. I'm not sure that either circumstance applies to us! :silly: While I've got you here...what's your take on critical illness (or accident) supplements, if you have one? </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908096 Mon, 20 Oct 2014 15:41:40 +0000 FliegepilzHut 1908096@https://boards.hellobee.com/ <p>@BadgerMom: I'd never really thought about it much before...but when I began thinking about it, that's what I came up with, too! DH's parents are older, currently trying to go for Universal coverage, frustrated by how expensive it is...and encouraging DH and me to get Universal coverage as well. :bummed: </p> <p>@MaryM: I can totally imagine keeping it, if my parents had started a policy! </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908092 Mon, 20 Oct 2014 15:40:18 +0000 LuLu Mom 1908092@https://boards.hellobee.com/ <p>We have term, we figured after the age of 85 or whatever it is, we should be pretty set regarding our needs financially. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908086 Mon, 20 Oct 2014 15:37:39 +0000 Raindrop 1908086@https://boards.hellobee.com/ <p>Term life is better now for your stage of life. It's cheaper and more suited for your needs right now. Unless you are super rich and have money to throw around.</p> <p>Universal is only good if you get it really young. My husband has it and his parents got it for him as a young child. We actually have dipped into it a few times and it's been a great resource for savings for us.</p> <p>I personally have term but we will probably start a universal one for our kids soonish. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908085 Mon, 20 Oct 2014 15:37:04 +0000 Mrs. Yoyo 1908085@https://boards.hellobee.com/ <p>Haha, I just wrote about this for another website.</p> <p>Universal really only makes sense in two scenarios: You're rich as hell and need to invest in some tax-sheltered places after maxing out your retirement accounts/need to avoid estate taxes when you die, OR you absolutely have no fiscal discipline and want the forced savings aspect of it. </p> <p>Assuming those scenarios don't apply, you are probably safe to pick term. :-) </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908078 Mon, 20 Oct 2014 15:31:35 +0000 MaryM 1908078@https://boards.hellobee.com/ <p>I have universal, and honestly, I only have it because my parents got it when I was a baby!</p> <p>I'm pretty sure my brother and sister have cashed out their policies. But it's only $40-50 a year, so I figure why the hell not? </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908075 Mon, 20 Oct 2014 15:30:01 +0000 BadgerMom 1908075@https://boards.hellobee.com/ <p>I've always heard that Term life is the way to go. Personally I believe the idea of life insurance is to hedge your bet against dying young and leaving your family in a bind without your income. If you're worried about money when you're old you're better off putting it in an IRA. </p> https://boards.hellobee.com/topic/term-vs-universal-life-insurance#post-1908066 Mon, 20 Oct 2014 15:20:44 +0000 FliegepilzHut 1908066@https://boards.hellobee.com/ <p>I'm working on filling out paperwork for open enrollment...and realized that my term life insurance through my employer is not portable (it's contingent on me being with my employer). DH doesn't currently have life insurance...and he and I should probably both lock in rates while we're relatively young. But that brings me to the question: do people really invest in universal life insurance? I'm feeling a little fatalistic...I'm not sure that it makes sense to pay into a policy life-long, to collect at a ripe old age. I mean, hopefully by that time, I'll have paid off major debts and socked away money to cover cremation/burial or whatever. Am I thinking about this wrong? Do you pay for Universal Life insurance? Why or why not? </p>