Best Whole Life Insurance Policies A2Z Term Life Life Insurance Quotes Reviews

best whole life insurance rates

Best Whole Life Insurance Policies

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With the existence of such varied types of insurance being offered today, most people question the worth of investing on a life insurance policy. But the general sentiment is that life insurance is still a worthy investment. Making a wise investment could result in huge benefits in the long term. Still, there are too many facets of any insurance policy that a huge amount of time and effort is required in order for a person to make smart decisions.

Whole life insurance vs. Term life insurance

Whole life insurance is particularly more complicated than term insurance. And since whole life insurance is also more costly, it pays to study in more detail its advantages over term insurance and to be aware of the disadvantages as well.

Though more expensive than term insurance and thus not as popular, whole life insurance has significant advantages over the former. It provides more than coverage, which is primarily what the other type of insurance offers. Term life insurance usually has a good enough coverage for most policyholders given the very affordable yearly payment requirements.

With term life insurance, the average insurance policy cost for an employed individual person under 50 years old is not too heavy on the pocket. The policy ends in the event of the policyholder’s demise. The face amount is then paid to the beneficiary of the insurance policy. The payment options for term insurance varies, with options including 1, 5, 10, 20 or 30 years.

Advantages of whole life insurance over term insurance

Whole life insurance is popularly known in some circles as an investment policy. It contains the very basic provisions of a term life insurance (or protection policy) plus an additional layer (or layers) that provide savings and other benefits to the insured. The premiums paid accumulate and gain value over time.

In addition, a component is invested in various platforms that provide potentially high returns. Every whole life insurance policy in existence today allows the policyholder to borrow cash, the amount of which is based on the face-value of the policy. And the policy can be cancelled or surrendered for a certain monetary value.

In summary, whole life insurance has the following general features:

• Provides great coverage for persons around 65 years of age who do not get approval for term life insurance
• Ideal for 40-50 year old individuals looking to build a stable future for their families
• The policy includes savings for the policyholder’s retirement
• Very useful in estate planning
• Guaranteed return of investment

All these features make whole life insurance the preferred life insurance policy choice for those who can afford the much higher premiums.

Sub-types of whole life insurance

Essentially, whole life insurance is a term life insurance with investment benefits. The monetary investments come in any of these forms: stocks, bonds, or the money market. The policyholder is also allowed to borrow money from the cash value of the policy. There are three sub-types of whole life insurance:

• Traditional
• Variable
• Universal

best whole life insurance rates