Whole life insurance works just like it sounds. This policy is designed to be with you for your entire life. The premiums on whole life policies are higher than they are for term because the insurance company knows they’ll eventually have to pay a claim. However, that is the advantage of whole life because it is guaranteed to pay out a benefit to your beneficiary when you die, even if you make it well into old age. In addition to the guaranteed death benefit the premiums are also guaranteed, and the policy builds up equity that the policyowner can use while they’re still alive. There are many great benefits to whole life insurance.
Because of its permanent nature whole life a perfect solution for people who are concerned with leaving a legacy, paying funeral expenses, or dealing with estate costs. Business owners may also be attracted to whole life insurance because the cash value feature can be used to finance business expansion. Individuals can also utilize this cash value as an alternative savings tool for their retirement planning.
People who should consider whole life insurance are those who want their policy to be inforce on the day they pass away, who don’t want to pay into a plan without getting something in return for it, or are interested in alternative savings strategies for their business or retirement.
Some things you may want to take into consideration when you’re thinking about buying whole life insurance are:
How much life insurance do I need?
How does my policy earn interest on its cash value?
How can I access my cash value in the future and what impact does it have on my coverage amount?
Can I make changes to the policy in the future if my needs change?
Are there any optional riders available that I could benefit from?
What is the financial rating of the life insurance company?
If you’re unsure how to get started a great first step is to contact your local independent insurance agency – Stolly Insurance. Our team of licensed and experienced agents will help you determine if whole life insurance is the right fit for your situation. Call us today toll free at 1-800-686-2147.
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