In the weeks to come, we’re going to examine some of the top questions associated with whole life insurance.
It doesn’t matter if you’ve purchased coverage in the past or are interested in buying your first policy, many of these questions may be on your mind.
It’s only natural to start at the beginning, with the following question among the most important: why choose a whole life insurance policy as compared to one of many other options?
Every consumer is in a unique situation. While it may make sense for you to purchase whole life insurance without delay, others could be better off learning more about additional options.
With that in mind, there are several reasons why selecting a whole life insurance policy is a good idea. Consider the following:
1. Protection for Life
Unlike term life insurance, a whole life policy doesn’t expire. This takes the phrase “protection for life” to a whole new level.
If you know for sure that you want your loved ones to receive a death benefit upon your passing, it’s essential to purchase whole life coverage.
With a term policy, this isn’t guaranteed. Instead, your beneficiary only receives a payout if you pass on within a specified period of time. For example, you could purchase a 20-year term policy at age 35. If you do this, your coverage will expire at age 55.
2. Level Premiums
Are you worried about being able to afford the cost of coverage in the future? With whole life insurance, you never have to concern yourself with this.
With a level premium, the cost of maintaining coverage will never increase. So, if you’re paying $100/month in 2017, you’ll pay the same $100/month in 2047. This goes a long way in making it easy to budget for the future.
3. Cash Value
Most people purchase life insurance because they want their loved ones to receive a payout upon their death.
However, there are other benefits associated with a whole life policy. For example, a portion of your premium will build cash value. You can borrow against this money in the future or use it to reduce your premium payments down the line.
When it comes to whole life insurance frequently asked questions, this one is always among the most common.
Once you know the benefits of choosing a whole life insurance policy, you can then decide if this is best for you, your family, and your budget.