Term Vs Whole Life Insurance, Which Is Right For You Now?
Whole Life insurance is very difficult to get a full grasp on
, especially for many of those who are selling it. It must be hard for them because they try to confuse their prospective customers with charts, graphs, spreadsheets, and irrelevant comparisons of all kinds.In fact many insurance agents push one type of insurance exclusively and focus their attention on why there favorite type is better than the others. Perhaps if they spent their time finding out specifically what job their prospective customers wanted their insurance to do they could instead recommend the right combination of coverages to help them achieve their goals whether whole life insurance is part of the solution or not.
Actually whole life insurance a financial product that is designed to help fulfill an individual's long-term goals and objectives. And because your goals and objectives last as long as you do it is important that you keep it in force for as long as you live. Therefore it is often described as a form of permanent life insurance that provides coverage for the life of the insured.
Whole life insurance is considered life insurance first and foremost, and is purchased to provide peace of mind for our family, our business partners, and others to whom we've made commitments. For most of us then what's really important is choosing the right life insurance agent, since they will help us decide whether it is whole life that we need or term or a combination of policies woven together to fit our unique situation.
Finding a knowledgeable life insurance agent is critical because there are various policy types that have evolved over the last several years from the three basic forms (whole life, term, and endowment) to meet various business and personal security needs. A seasoned life insurance agent can help you understand the value of the cash accumulation element of each - or lack there of.
Money that accumulates tax free inside your whole life policy may offer important "living benefits" that may be available during your lifetime. The benefits provide individuals and small business owners the ability to meet a variety of different needs, supplementing long-term care and retirement, college costs, or starting, expanding or protecting a business.
Your insurance agent will also provide details of a second-to-die life insurance policy that insures the lives of two people, typically a husband and a wife or two equal partners in a business. And if you're considering a policy whose premiums and death benefits may fluctuate depending on investments or interest rates, you should also consult your agent. They can provide long term illustrations based on various scenarios.
Death is in the final analysis, guaranteed - generally too soon and not at the time when we've got everything exactly where we wanted it to be. The day we walk out the death benefit from our life insurance policy walks in, and it is in cash. When a death benefit check is issued to a family member or business partner it lets them know that you were determined to meet you commitments whether or not you were there to do so in person.
And generally speaking the death benefit, cash when it is need the most, is tax free if your insurance policy is paid by after-tax dollars. This is yet another reason to consult a knowledgeable life insurance agent - to make sure that the ownership, premium payer, beneficiaries etc. are set up to your greatest advantage.
In addition to pure death benefit protection, whole life insurance policies contain a cash value component - sometimes what is referred to as a "living benefit" that you can be access through loans or withdrawals.
Although whole life premiums are initially higher than term premiums, whole life policies develop "cash values". Therefore whole life insurance premiums in the early years of the policy are much higher than the premiums of a term life policy. That being said, premiums for term insurance can increase over the years and as you get older, your risk increases.
Your insurance agent can combine various types of coverage into a package that meets your protection needs today while managing the premiums over time to meet the long term objectives of your family or your company.
by: Wayne Messick Life Insurance Trust: Tips for Keeping Inheritance Property Out of Probate Can your genetic makeup stop you from buying life insurance? Better Deal Life Insurance Deciding A Good Life Insurance Ways To Get Good Life Insurance Policy Searching For Life Insurance How personal bankruptcy impacts your life insurance policy Top Up Your Life Insurance Life Insurance for Police Officers and Other Law Enforcement Individuals The Many Options of No Medical Exam Life Insurance. What Is Best? Rotator Cuff Muscles Injury – Taking Care of Injured Rotor Cuff Do You Need To Pass A Physical To Be Granted Life Insurance? How To Improve Your Life In 51 Simple, And Not-so-simple Ways