Insuring against risk--car accidents, calamities at home, and yes, premature death--is a crucial aspect of the financial-planning process, yet it's one that tends not to get a lot of play on Morningstar.com's investing-centric Discuss forums.
In a recent thread on Morningstar.com, I asked readers to share how they had approached insuring against the latter risk. Had they purchased a low-cost, no-frills term life insurance policy, or had they opted for a more permanent life insurance policy as part of their financial plans?
Readers' responses ran the gamut: Although some were openly disdainful of permanent policies, characterizing them as high-cost and less-than-transparent, others said they have used a combination of term and whole or universal policies and have been satisfied with their decisions. To read the complete thread or share your own approach to life insurance, click here (http://socialize.morningstar.com/NewSocialize/forums/p/299758/3204648.aspx).
BTID All the Way A healthy contingent of posters was unequivocal about using a utilitarian term policy and steering clear of permanent products.
Jnelson6455 advised, "Buy term and invest the difference--BTID--all the way. My agent replaced my whole life policy and for the same money I had been paying I was able to triple my coverage and still have money to save on my own. Cash-value policies are one of the worst products sold to the middle class. Too expensive to get the coverage needed and too many hidden fees to qualify as a good savings vehicle."... read more.
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