Many financial advisers believe that term life insurance is the best choice for a financial safety net, but people do not seem to be heeding their advice, according to Daily Finance. Consumers are increasingly purchasing life insurance policies that are not straight term.
"Term is still 99 percent the right thing to get, if you need insurance, and have a baby, and want to make sure they are fed and educated if you die," Bob Hunter, director of insurance for the Consumer Federation of America, told the news outlet. "But if you're looking for a tax break, then whole insurance makes sense."
The number of new term life insurance policies fell to 41.1 percent of the life insurance market in 2009, down from 44.6 percent in 2007, according to the American Council of Life Insurance. The number continued to drop last year, as sales fell 16 percent in the fourth quarter, insurance researcher LIMRA reports.
Whole life insurance policy sales rose 6 percent and universal sales were up 20 percent in the fourth quarter of 2010, according to the media outlet.