What Exactly is a Whole Life Insurance Policy

life-insuranceA whole life insurance policy is a substantial commitment and it’s very different from regular life insurance policies. Essentially, when you pay for whole life insurance, you are committing to keep that policy in force for the remainder of your life. You will need to pay premiums into the policy every month, or possibly every year. Until whole life insurance policies were introduced, life insurance was always temporary, or term-based. However, there were many subscribers upset with these policies because of the terms associated with them. They would pay premiums for the majority of their life and ultimately never use the policy, because the term would either expire or no longer be cost effective for them. Whole life insurance policies guaranteed that the policy would follow you for your whole life, providing financial assistance to the beneficiaries that you have on your policy once you are gone.

A whole life insurance policy offers superior financial protection

If you are looking to protect the individuals in your family as best you can, a whole life insurance policy offers the superior financial protection that you need. It can help your family prepare for unexpected disasters and it can build cash value in the meantime. It’s an investment that will follow you for the rest of your life, providing a substantial amount of money to your loved ones. In most cases, you can get up to $100,000 of coverage, for paying under $100 per month.

A whole life insurance policy offers guaranteed protection

The benefit to a whole life insurance policy is that you get guaranteed protection. The beneficiaries on your policy are guaranteed to receive the money that you have in your whole life insurance plan. This is because the plan is designed to follow you until your death. Your beneficiaries are the primary recipients of the money and you do not have to worry about any terms or complications with this policy.

Whole life insurance policies can be paid in a variety of ways

Whole life insurance policies can actually be paid in several different ways. For instance, if you look online, there are some life insurance companies that will allow you to pay just one single payment as your premium. This is usually around $20,000 and you can receive up to $100,000 in coverage. It’s a onetime payment opportunity that is only available for a limited time. There are also opportunities such as paying a high price every month, but you will be done paying off your policy in 10 years, 15 years or 20 years depending on what you choose. This allows you to get all of the benefits of a whole insurance policy, but you won’t have to worry about paying for the rest of your life. If you decide that paying monthly for the rest of your life is an okay thing to deal with, you will get a low premium and up to $100,000 in coverage. The many different ways that you are allowed to pay makes whole life insurance policies very versatile and they cater to your budget in a lot of different ways.

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