Whole Life Insurance
With all the life insurance options out there – and there are plenty – it’s important that you do a certain amount of research to sift through all the information and clearly understand each different kind and what the fine print is for each one. This is the really the only way to ensure that whichever policy you end up purchasing is the right one for you.
Whole Life Insurance is actually exactly what it says – it’s for your whole life. In other words the policy lasts for the entirety of the your life and usually premiums are paid throughout the whole term as well. It also generally pays a lump sum when the you pass away. In some instances, if you are diagnosed with a critical illness, the policy can be paid out earlier.
This type of insurance is tied to the premium. Some policies have a single premium or sometimes it can be set up with lump sum payments in differing time periods that are flexible. These types of life insurance policies are generally safe investments. And if you decide to cancel the policy part way through the original term, you can receive a payment in full of whatever premiums the account has accumulated up until that time. So that does provide some opportunity for tax-free savings.
The other main difference with a Whole Life Insurance policy is that a set amount of money is guaranteed to be paid out to the beneficiaries. The main obstacle for this kind of insurance for most people is that the premiums are generally higher than other insurance options such as Term Insurance. But you always must remember that you really do get what you pay for.
And when it comes to making a very important decision such as which life insurance to purchase, you really should not make the amount of the monthly premiums your number one deciding factor. The amount of the payout, the additional benefits, such as reinvested dividends, options to take a cash loan from the policy, and the ability to cash out at any time, are all things well worth considering.
So as with everything, it’s important to do your research and call in the experts if the decision making just gets too tricky. There is a good reason that professional life insurance brokers obtain credentials – not everything can be left to the laymen. So if you have determined that Whole Life Insurance is the right option for you, then go for it and know that it is safe, practical, can offer a substantial payout at the end, and can truly provide you with piece of mind. And that in of itself is worth a lot more than a monthly premium.