Whole Life Insurance Quotes

Protecting your family is important to you. This fact is evident in everything you do. But have you considered how your death can impact their future? If not properly covered, your death can leave your family in financial ruin. Discover how you can best protect your family’s financial future.

Funeral expenses

The cost of a funeral alone can cause financial ruin for a family that is unprepared. Death burial costs are constantly rising. Many families are left without options when the death of a loved one occurs. If you were the primary provider in your home, a loan from a bank may not even be an option. Your death is difficult enough for your family to deal with, don’t leave them wondering how they will pay for the final expenses.

Income replacement

If you are, indeed, the sole provider for the home, you family will experience a loss of income. Even if your spouse obtains or retains employment, child care may need to be considered. A once two income home must now learn how to function with only one. Bill collectors cannot factor in your death. This is your responsibility. Protect your family with the right life insurance policy and prevent this from happening.

Debt

In addition to temporarily replacing your income, an adequate life insurance policy can help your family to absolve some of your debt. This money can be used to pay off a vehicle or a mortgage, reducing the overall expenses of living. This can better equip your family for their financial future once you are gone.

College tuition

Even if you and your spouse have been saving for a child’s tuition, your spouse may no longer be able to continue saving with you now gone. An adequate life insurance policy can provide funds to place into savings for your child’s future and relieve your spouse of this future financial burden.

Estate taxes

If you or your spouse have a large estate, it is essential that you have adequate life insurance coverage. The cost of estate taxes can consume more than half of your family’s net worth, leaving your heirs with less financial stability. You worked hard to earn your income over the course of your life, don’t leave it unprotected.

Creating a nest egg

Whole life insurance policies accrue a cash value. This cash value can be borrowed against during the life of the policy, as long as there are adequate funds. Having a cash savings option can help to protect your family while you are still living, should you become unemployed or disabled.

Time for grieving

A life insurance policy that provides enough to pay off a substantial amount of your family’s debt can allow your family to take time off to grieve your loss. No spouse recovers immediately from the loss of their life-long partner . Give your family time to miss you and heal without having to worry about how they are going to pay the bills.

Choosing the right policy

There are many different options when it comes to life insurance coverage. However, they all fall into one of two categories; term life insurance and whole life insurance.

Term life insurance is meant as a temporary form of protection. It has more affordable rates but these rates are based upon your probability of death at the time the policy is issued. Upon renewing your policy, rates may increase substantially. Mortality must occur within the coverage dates for you to receive benefits. You do also have the option to change your policy to a whole life policy if done within the contract dates. Term life insurance does not offer a cash savings to borrow against.

Whole life insurance policies are intended to provide you with coverage until you die. As long as your premiums are paid, you are guaranteed coverage and your rate will never change. Whole life policies accrue cash value. Benefit payment will occur at some point during the policy. This is the reason behind the higher rates. With term life insurance policies, the individual does not always experience mortality so the company makes a total profit on the insurance plan.

Customizing your life insurance policy to fit your needs

Both whole life insurance and term life insurance policies offer extensions, called riders that may be added to your policy. These extensions can help you to get the most out of your policy, while it is effect. Some provide protection while others provide you with an option to purchase additional coverage when your family grows. Some riders are only available through one type of policy or the other.

Life insurance provides your family with protection, in the event of your death. Whole life policies can even provide protection while you are still living. Carefully consider your options and decide which life insurance policy is right for you. No matter which option you choose, carrying life insurance will preserve your family’s financial future.

Because every family is different, there are many different options when it comes to life insurance. However, they can all be categorized into either whole life insurance or term life insurance. Gaining the knowledge between the differences between the two types of life insurance, as well as their advantages and disadvantages can ensure you make the right decision for your family.

Understanding the difference

Term life insurance offers you coverage for a set amount of time. This time frame is determined when you purchase the policy and can range anywhere from five years to thirty years. Once the policy termination date is reached, you can renew your policy, discontinue coverage, or purchase whole life insurance.

Whole life insurance is intended to provide you with life insurance until you die. As long as premiums are paid on time, you are guaranteed life insurance until after your death. Upon your death, any listed beneficiaries will receive the face value of the policy.

Term Life Insurance Advantages and Disadvantages

Term life insurance is the most inexpensive policy, initially. Because the rates are based upon age as well as your risk of death, as you get older these rates will change. This can make term life insurance premiums higher over time. Additionally, if you develop a serious health condition, you may not be able to purchase whole life insurance or renew the term life insurance policy after the termination date.

Because you have a life insurance policy, during the term of the policy, in the event of your death, your family and expenses are covered. Unfortunately, if you do not die within the term of the policy, you will lose all premiums paid, unless you purchase a return of policy rider.

Term life insurance policies are often chosen because families cannot afford the cost of whole life policies. Although this is an understandable decision, you should carefully consider how a term life insurance policy may impact your future. Is saving a little money today worth spending more in the future, or being at risk for not being able to renew your policy because of health reasons? If a whole life insurance policy is just not possible for you at this point in your life, consider purchasing a term life insurance that allows you the option to convert it to a whole life policy within the contract date.

Whole Life Insurance Advantages and Disadvantages

The most notable disadvantage to whole life insurance is the premium cost. However, many individuals have found that, if they had purchased a term life insurance policy, that they would have paid more money over time because of increasing premiums. Whole life insurance premiums never change. This fixed rate is available to you as long as you pay your premiums on time.

Whole life insurance policies usually offer a cash value savings. This cash value can later be borrowed against, if a financial need in your life occurs. This can be extremely beneficial when unexpected life changes occur, like the loss of a job. All funds that accrue in your whole life insurance policy are tax deferred.

Whole life insurance policies have an age of maturity, often when you reach 100 years of age. With many policies, if you reach the age of maturity and have had no lapse in coverage, you will continue to receive the full face value of your premium at no additional charge.

Whole life insurance policies also generate what is called a “non-guaranteed cash value”. This cash value is based upon dividends or excess interest. This enhances the face value of your policy. However, these funds are not guaranteed. You also do not have a part in making the decision as to where these funds are invested.

Because your premiums are based upon continuous payment, nonpayment can result in a loss of benefits. Unless you purchase an additional rider to go with your policy, all benefits will be lost. However, if you cannot afford the additional rider and experience financial problems in the future, you can borrow against the cash value of your policy to pay policy premiums.

Due to the nature of the policy, you may be required to pay administrative charges. These charges are directly deducted from your premium before being credited to your policy as net premiums. The remaining balance of your premium payment is dispersed amongst your benefits, riders, and supplemental benefits as well as your interest and cash value savings.

Riders

Riders can be added to both term life and whole life insurance policies. These will either add to the face value of your policy or restrict benefits. All riders that enhance the face value of your policy are available at an extra charge.

Making the right decision about your death can be overwhelming. Planning for an entire life’s worth of changes seems impossible. However, knowing the advantages and disadvantages to different life insurance policies available to you can help you to create a better plan for your future.