[tracey]

My Statefarm rep is suggesting I transfer my 5 year term insurance (which is over at the end of July) to two different life insurances - a 20 year term insurance and a universal life insurance policy - does anyone else have both? I don't see why I can't just get the universal life insurance, since I'll get money back from it later and you get nothing from the term life insurance.I don't necessarily want the universal life insurance because I may be able to get money back on it later - I just want what I'll need in case something happens to my husband or myself while our children are under 18.This may sound like a dumb question, how do I find an independent insurance agent?

[wilderwriter]

I'm not sure what the phrase Universal Life means. I had always thought there was either Term or Whole Life policies.I have also (back when I was looking into this closer, for myself) discovered that you don't normally get a very good return on investment with Whole Life policies. You would be better-advised to invest the difference in Premiums in some sort of money-market or other REAL investment.One advantage of the Whole Life policy is that you get used to paying the higher premiums, and are not tempted to stop investing the difference.Get some performance data from your State Farm guy on what the returns have been on the investments related to that policy and compare them to typical investment programs.

[Archer]

Check with your Statefarm rep.....Yearly premiums for Universal life may be higher then for term. Also, face value of the policy (amount beneficiary gets when you die) may decrease over the life of the policy.As a general rule term insurance has lower premiums then Universal life and you get a highr face value then a universal policy.Universal policies are"savings accounts"...you may get a better retun for your money through good long term investments.

[Zarnev]

There's nothing wrong with having both types. Term is less expensive so you can get more coverage when you need it the most. (when you have kids and a mortage). When you get older you may want a smaller permanent policy because in 20 years your health may not allow you to qualify for an additional term. Then again you may not need a policy in twenty years. Nobody here can answer that for you.Don't get the UL just because you get money back; only get it if you want the coverage as you get older. The return on permanent life is not a good investment.