As a general rule of thumb, whole life insurance costs more than term coverage. While price is always a big deal when shopping for a policy, you need to remember one thing: you get what you pay for.
With whole life coverage, a death benefit is guaranteed to be paid out as long as you continue to pay your premium.
Conversely, term life insurance doesn’t work the same way. Instead, after a particular period of time, such as 20 years, your policy expires. Unless you pass on during those 20 years, all of the money you pay into the policy is gone.
In the past, we’ve tackled the topic of how much it costs to purchase whole life insurance. The problem with this is simple: the amount you’re asked to pay for a policy is based largely on your particular situation. In other words, there is no way of saying for sure how much you will pay.
Can You Afford It?
Unfortunately, many people out there are under the impression that whole life insurance is unaffordable. They know it costs more than term coverage, and for this reason, they never look into the finer details of buying a policy.
Don’t let this happen to you. Instead, you should conclude that you can afford a policy if you take the right approach.
Here are a few things you can do to reduce the cost of coverage:
- Shop online. Hands down, this is the best way to find the most affordable policy. This is much easier than the traditional calling brokers and agents and/or meeting with these professionals in person.
- Get more than one quote from more than one company. Do this: settle on three whole life insurance companies that provide a solid experience regarding selection, customer service, and reliability. From there, request quotes for varying coverage from each one.
- But when you’re young and healthy. While this ship may have sailed for some, you may still be in a position to take advantage. If you’re young, if you don’t yet have any health concerns, you want to shop today. This is the best way to ensure that you can afford whole life insurance.
Conclusion
Can I afford a whole life insurance policy?
This is a question that many people struggle with. By considering the above advice, you’ll find yourself making decisions that work in your favor. Who knows, you may have an active policy in place soon enough!
