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Today, insurance shoppers have a great deal of choice when it comes to the policies from which they can choose. For virtually any person with any number of dependents, varying needs and budgets, there is a type of life insurance that will adequately cover them and those they seek to protect.
In your search for life insurance, you may have come across whole life insurance. What is whole life insurance, you might ask? Whole life insurance is a type of permanent life insurance whereby the insured will be covered by their policy, no matter when they die, as it’s a policy that will last your entire life. This is unlike term life insurance where the insured chooses a specific term and must die within that term for their beneficiaries to be paid the death benefit.
There are other features of a whole life policy that differ as well, such as a whole life policy builds cash value over time. In fact, if the insured lives to be 100 years old, their insurance provider will pay them the cash value of their policy. For some people, this is reason enough to motivate them to buy a whole life insurance policy.
Perhaps one of the only downfalls of whole life insurance is that it can be costly. Because the insured is protected for the duration of their life, this policy could wind up costing a person significantly more than it would to buy a term life policy. Then, if you add on health conditions and habits like smoking that insurance providers deem risky, you could see your insurance premiums rise even more.
Still, despite its cost, whole life will provide insurance holders with lifelong peace of mind. There are several different types of whole life insurance from which a person can choose, including single premium, interest sensitive, economic and limited pay.
If you’re unsure as to whether or not whole life is the insurance for you, evaluate your current circumstances and the needs of your dependents. If there are people or interests you wish to protect for longer than any set duration of time then whole life could be just the solution you’re looking for. Fill out our quote form and we can help compare rates and provide free Whole Life Insurance Quotes for you.
A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance.
Single premium life insurance coverage bought in addition to the face amount of the policy by using policy dividends.
We secured a $250,000 whole life insurance policy for a 35 year old male for $190 a month. The customer’s goals were to get a permanent death benefit and he was interested in building cash value. Building cash value was important because he wanted to use the money to supplement his retirement and his son’s college education, if needed. We found a policy that would meet all his needs.
Here are some of the benefits we provided in the policy he chose:
At age 65, the cash value would grow to $95,000, which the insured could use when needed in the form of a policy loan or withdrawal. The policy also provided a paid up insurance rider that would allow him to stop paying his monthly premiums at the age 65 and still have permanent life insurance in-force with a death benefit of $191,000, for life. He could also use the extended term feature of the policy, which if exercised, at age 65 would give him a $500,000 term policy that would last 20 years without ever making a premium payment again.
A 28 year old healthy female can get a $250,000 whole life insurance policy for around $102 a month. The whole life insurance policy will build up some nice cash value over the lifetime of the policy. At age 65, the cash value could grow to $66,000. This money could be used for a variety of things. Best part is, you have access to the cash value at any time. If she wanted to stop paying monthly premiums at the age of 65, and still have permanent life insurance in-force, she could exercise the paid up additions option and have a death benefit of $170,500 for life, without making another premium payment–ever.
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