When shopping for a life insurance policy, people often hear about 2 types: whole and term life. These are two different types of insurance coverages and should be considered separately. Everyone on has a different set of needs when it comes to life insurance. Most people that are interested in whole life insurance have an interest in insurance that multi-tasks as well as protects.
Anyone that is interested in buying whole life insurance can do so. If they are old enough to pay the premium and old enough to sign a contract, they are encouraged to consider life insurance. As people learn more about this insurance, they see that it’s something that can do more for them than anything else.
The Undiscussed Benefits
Not everyone thinks about the benefits of whole life insurance policies beyond the obvious benefits. While those benefits are very nice to have in such a horribly stressful time, whole life insurance provides more than that.
Coverage for Life- Many people think that coverage for life means coverage for as long as they live. While that may be true for some whole life insurance companies, most only cover their beneficiaries until they are 100 years old. This is more than enough time to hold a policy for most people because they don’t live to be 100 years old.
Savings Vehicle- Not many people realize they can actually use their whole life insurance policy as a savings vehicle. After the first year of having a whole life policy, many people are surprised to learn they are building cash value.
If for any reason someone wanted to surrender their policy for the money they have saved, they have that option to do it. This is a wonderful way to save for long term plans and goals for those that start early.
Something to Borrow Against- While not everyone wants to surrender a policy they have had for 20 years, there are times people will want to borrow money. With a whole life insurance policy, borrowing against the value of their policy is an option as well. It’s not a traditional way to borrow money but it’s something that can be done when necessary.
Rates that Don’t Increase- Many people are surprised their premiums don’t increase. This is something that is wonderful for those that are on a fixed income or budget. Because the amount of coverage won’t change and the interest bearing element of their policies, most whole life insurance companies write their policies to have a fixed premium amount over the life of the policy.
When it comes to life insurance, everyone needs different things. Those that don’t have dependents don’t normally look at whole life insurance because they don’t feel they need it. Many don’t realize the added benefits that having a whole life insurance policy can have.
Not only do whole life insurance policies give more benefits than other options, they are more financially sound investments over time. Whole life insurance policies were created to protect beneficiaries and their families for a lifetime and many times, it does more than that. Whole life insurance protects the dreams of those living and those loved ones that have passed away.