Why would you buy term life insurance ? Page 2

But why would you want to do that?

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Can Life Insurance be arranged quickly?: It is dependent upon two factors: - Click here to find out more details
Will I need a medical?: This depends upon your medical history and the exact plan you have chosen.
Laws and Life Insurance: The following Questions represent the legal aspects of Life Insurance we think you will be most interested in. The information is not definitive nor is it exhaustive but simply an introduction into the legalities involved.
Complaints about a Life Insurance Adviser: All the Life Insurance Adviser aqre now regulated by the Financial Services Authority.

Well, what you may not know is that when you buy a whole life policy, you are essentially paying for 2 different objectives -- (1) insurance, and (2) investment.

A part of your premiums go towards paying for the "insurance" part of the policy so that you get the insurance coverage, and the remainder goes towards paying for the "investment" part of the policy so that you can get some positive returns at the end of the policy.

In other words, the insurance company is using your premiums to accomplish 2 different things on your behalf.

That's why you should consider the "buy term and invest the difference" strategy. Instead of giving all the money to 1 ( remortgages ) company to try to do 2 different things, you should consider buying term insurance to give you the insurance coverage, and then use the rest of the money to invest in some other investment vehicle yourself.

When you invest the rest of the money yourself, you can choose whatever investment vehicle you like, and you can also choose to use the best fund manager around ( secured loans ) if you want to. And should you ever want switch investment vehicles, you can rest assured that your insurance coverage will not be affected at all.

In short, you'll have more choices, more control, undisturbed insurance coverage, and hopefully more returns at the end of the day.