Available Whole Life Insurance - Protection for Your Entire Lifetime
Whole life insurance provides consistent coverage through retirement with premiums and benefits that will not change while you grow older. A policy can build cash value with time - which you can apply toward a paid-in-full life policy or even borrow against later. Other benefits include guaranteed coverage, family options, additional payments for covered accident-related claims, and early payouts for terminal illness.
Whole life insurance is the basic type of permanent life insurance. Other types of permanent life insurance coverage include universal life, variable life, and variable universal life.
Available Whole Life Insurance
these types of policies share numerous common benefits, including:
• A level premium through the policy
• Coverage for as long as you live
• Accumulation of cash value
• Best suited to long-range goals
an entire life policy includes a premium that stays the same for the entire policy. The higher premium cost is a result of balancing the speed throughout the lifetime of the policy - at first, the premium will be higher than it should be, but over time, the cost will require into account your aging status. The “overpayment” in early years is usually used for paying claims and investing, plus the later years to help pay the cost while you age and have less income.
A portion of the premiums paid into your whole life policy will grow tax-free with time. This cash value might be borrowed against, paid for you (if you are still living at age 100 or cancel your policy), or presented to your beneficiaries following death. Note that any amount you borrow out of your policy will reduce the death benefit.
As with all permanent life insurance, whole life insurance premiums are pricey. Over time, whole life insurance is considered more economical, since the premium never increases and the policy builds value.
Another consideration is the fact that whole life policies yield a little rate of return in comparison with other investments. Depending solely on the investment portion of a permanent policy is less desirable than making your own independent investment choices.
Whole life is a good choice for people who are looking for permanent insurance coverage that provides a death benefit payable through the policyholder’s life, without having to be limited to a specific term of years. Whole life is also a good solution for policyholders who wish to gain some cash value accumulation in their monthly insurance payments through the years - whole life offers a cash value component, which is guaranteed to grow with time.
When looking for the very best whole life insurance policy, each policyholder should consider these factors:
1) Getting the best performance in the cash value,
2) Finding a stable insurance provider,
3) Make payment on lowest fees while still obtaining a good value,
4) Understanding the policy’s internal rate of return.
Each variant of whole life on the market offers different options for premium payment schedules and different levels of risk. Consider your full financial picture and overall financial goals to find the whole life insurance policy that best aligns with your needs.