Topic: Whole Life Insurance
Many people are confused by life insurance, but that doesn't need to be the case. Unless you want to do something really sophisticated, you only need to focus on two different types of life insurance: term and whole life.
Term life means you pay premiums for a certain period, and if you die in that period your beneficiaries get the lump sum face value of the policy. If you die after the term policy then your beneficiaries get nothing.
Whole life means that you pay premiums for your entire lifetime, but your beneficiaries are guaranteed to get a payout no matter what age you die.
Why Do I Need Whole Life Insurance?
The question I hear a lot is, "why do I need whole life insurance?" It's a good question, because premiums are usually higher than a term policy, and the thought of having a monthly payment for the rest of your life is daunting to many.
But lets take a look at why buying a whole life insurance policy (also called permanent life) can be the right thing for you.
You'll Never Outlive Your Coverage
As I mentioned above, whole life insurance lasts for your entire life. Most policies will reach maturity at age 100 or age 120. You will most likely pass away before you reach age 100, so while you will be paying premiums until that day, your family will definitely receive their money.
Buying a whole life policy keeps you from having to worry about living to an age that will keep you from keeping your family financially secure when they are mourning your death.
Not As Hard To Qualify For Whole Life Insurance
Term life insurance applications are long and detailed. Insurance companies usually only take the healthiest individuals. However, whole life carriers have ways to take just about anyone, and the applications are short.
Now, your policy may be graded, meaning the full face value only takes effect after 2 years, but you can get coverage.
If you have had a tough time finding a life insurance carrier that takes you because of health problems, then find a life insurance agent that can talk you through your whole life insurance options.
Whole Life Insurance Is Great For Final Expenses
Did you know that a funeral can cost more than $12,000? Then, when you add in some debts, your family can be forced to pay $20,000 or more when you die.
A quick, easy, whole life insurance policy can help your beneficiaries pay for those final expenses that are sitting there waiting on them after you're gone.
Consider it a final, appreciated gift that you leave your family.
Like I said above, term policies may be best in some situations. But as you can see, when you wonder, "why do I need a whole life insurance policy" there are some good reasons to go out and buy one.