When you’re gone, you want to make sure that your loved ones are financially protected. No matter how old you are, it’s always a good idea to plan for the future so that you don’t have to worry about what happens after you’ve died. At Findinsurance.com, we understand how important it is to figure out the right solution for you and your family, which is why we make it easy to connect with the top whole life insurance companies.
When picking out an insurance policy, you’ll notice that there are two primary options – term and whole life insurance. Depending on your situation, one or the other may be best for you. We want to focus on whole life insurance – what it is, how it works, and why it may be the best solution for you and your loved ones.
How Does Whole Life Insurance Work?
With this type of policy, you’re covered no matter what. The plan will stay in place forever, as long as you continue to pay your premiums. Unlike term life insurance that has a set expiration date, you can get a policy at a young age and never have to worry about it lapsing. The best whole life insurance policies will also give you what’s called cash value.
When talking with your insurance agent, you may decide that you want to have extra money on hand in case of an emergency. Since you’re paying your premiums every month anyway, why not put some of that money into a growth account that will appreciate over time?
What’s great about having this type of policy is that you can borrow against the value of your plan if and when you need to. For example, if you have to make a down payment on a house or pay for a child’s college tuition, you can use the money in your whole life insurance policy to do that. Ultimately, you will want to repay it as soon as possible so that your beneficiaries can still claim a hefty benefit when you pass, but it’s nice to know that the money’s there.
Whole Life Insurance Pros and Cons
Because the way you take care of your family when you’re gone matters, we want you to understand the benefits and downsides of this type of policy. The best whole life insurance companies will be honest about the pros and cons of whole life insurance.
- Locked-in Rate – once you sign up, your premiums will stay the same forever, even if your health changes. Thus, the earlier you can get signed up, the better.
- Cash Value Appreciation – long-term financial planning involves putting money away whenever possible. This policy will allow your money to appreciate, tax-free.
- Permanent Coverage – never worry about a lapse in coverage. The best whole life insurance companies will guarantee your death benefit and ensure that your plan is always ready.
- Cost – for the most part, you will have to pay higher premiums than if you chose a term life insurance policy. Also, consider the fact that you will be paying premiums for decades.
Term Life Insurance and Whole Life Insurance Differences
When talking with your insurance agent, you will want to discuss the various elements of both term and whole life insurance. The primary differences between the two include:
- Fixed Term – term policies will expire after a set period, which can be as little as 10 years. You can usually renew after that, but your coverage could lapse.
- No Cash Value – term insurance means that you’re not paying into a fund that will grow tax-free. Instead, you choose a death benefit and a payout structure.
- Adjustable Premiums – if you do take out a short-term policy and decide to renew, the whole life insurance company may decide to have you take a physical to see if your premiums should go up. Simply put, you’re not locked into a rate.
Connect with Whole Life Insurance Companies Today
Protecting your loved ones financially is an important step for you. At Findinsurance.com, we connect you with the best whole life insurance companies so that you can have peace of mind.