Whole Life Insurance
Whole life insurance is becoming popular and attracting millions of Americans.
One may notice that whole life insurance is similar in concept to permanent life insurance. Most often, a person pays monthly insurance premiums to keep a whole life insurance policy in force. Should the policyholder die, beneficiaries are granted financial protection. A person cannot cancel this type of policy. In return for its purchase, a policyholder pays a fixed amount over the term of the policy with the opportunity to build reserves.
There are a number of benefits that appeal to potential whole life policyholders. This kind of policy is permanent, achieves long-term goals and offers a guaranteed cash value. It is also considered a good investment for all ages, as it does not expire. That may be an important point for elderly policyholders, who often have difficulty renewing an expired policy. For younger individuals, whole life insurance offers lower annual premiums.
Many find the cash-building component of whole life insurance very attractive. Part of the monthly premium payment goes into a savings account. Over time, a person may accrue cash value savings at a fixed rate. These may be withdrawn should emergency medical expenses or other needs arise.
Since this type of life insurance is permanent, policyholders pay a fixed premium and enjoy fixed benefits. At no time during the course of policy coverage do premiums increase, and at no time is coverage reduced. Death benefits are paid out in all cases, provided that the insurance company is informed of the insured’s death and that an original death certificate is submitted as proof. Whole life insurance offers financial protection to those left behind after a death. Such a policy provides funds for a family to move forward after a loss.
There are a number of options in life insurance, and the “best” option depends on what a person hopes to achieve by buying a policy. It is best to spend time asking questions about the various choices available. Focus on options involving lifestyle, budget and goals. Compare and contrast options, premiums, benefits, death benefit payouts and flexibility. Speak to a licensed, qualified insurance broker to better understand the terms and choices involved with whole life insurance policies.