Learn how to find whole life insurance quotes from the best companies online.
Life insurance is a must have service in our day and age. There are a lot of different types of life cover out there, though they can be broken down into the two broad categories of whole life cover and term life insurance, each having its own set of advantages and disadvantages.
What Is Whole of Life Insurance?
Like a term life insurance policy or any other kind of life assurance, a whole life policy is a financial instrument which allows individuals (or couples, in the case of joint policies) to continue to provide for their loved ones even after their death.
However, unlike a term life policy, which usually tends to provide a death benefit and little or nothing else, a whole life policy often gives the policyholder certain tax advantages or financial benefits such as an accumulation of funds which may be paid out periodically as dividends or added to the payment made to their beneficiary upon their death.
The Benefits of Whole Life Policies
Perhaps it goes without saying, but a whole life policy also differs from term life in that it is permanent (for the policyholder’s whole life) rather than being limited to a specific period of cover.
Whole life cover is the most common type of permanent life insurance policy and offers the policyholder the benefit of having set premiums, so they do not have to worry about their rates increasing over the life of the policy.
As mentioned above, a whole life policy will usually accumulate cash value as well, though it can be many years before the policy matures and the accrued value can be accessed and used.
However, since they do acquire cash value, policyholders will sometimes choose to cash them out after maturity to help defray major expenses such as the education of their children, medical expenses or large purchases.
Some whole life plans also provide policyholders with a choice of how their premiums are invested by the insurer, which means that your whole life policy can be an investment vehicle as well as giving you peace of mind and making sure that your loved ones will be cared for after you’re gone.
The Downside of Whole Life Insurance
Like other types of life cover, whole life policies have their disadvantages. One is that the policyholder does not have any real amount of flexibility in terms of the amount or payment schedule of their premiums, but this is offset by the fact that their premiums will never rise over the life of the policy.
There is also the fact that they tend to be significantly more costly than term life cover, although it is certainly possible to find an affordable whole life policy which meets your needs – and of course, the cash value that they accrue provides policyholders with a sort of financial safety net which a term life policy cannot offer.
Even if you’re not sure after you compare whole life insurance quotes, it is advisable to have a look online and get some advice; it might be a better fit for your budget and your financial goals than you think.
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