It might surprise you to learn that in 2020, only 54% of Americans have life insurance. For many, buying life insurance means facing their own mortality. Others find it daunting to consider the many types of life insurance policies and knowing which would be right for them.
Yet, most people would agree, they want to take care of their families and make sure they will be okay if something were to happen to them. There’s something comforting about knowing your family could stay in their home and be protected financially.
Whole life insurance is one smart option for those looking for life insurance protection and the ability to grow their money at the same time. Read on to learn more about whole life insurance and why it might be the right life insurance option for you.
What Is Whole Life Insurance?
Whole life insurance is a type of life insurance policy that’s key characteristic is that it covers you for your whole life. It’s often referred to as permanent life insurance.
Once you have coverage under a whole life policy, the coverage remains in place for the entirety of your life as long as you continue to pay the premiums. Upon your death, your named beneficiary receives the agreed-upon death benefit.
Whole Life Insurance Premiums
There are a few features to whole life insurance premiums worth noting. The premiums are fixed, so they don’t change over time allowing you to plan for the cost. You can set them up a few ways with your insurer.
One option is to pay a fixed amount for a period of years. This route would mean higher premiums since at some point your premiums will stop, but your coverage will remain in effect for your life. Some might choose this option knowing they wouldn’t have to continue to pay premiums once they reach retirement age.
The other option is to pay a little lower premium consistently throughout your life. The rate is a little lower with this option. As long as you continue to pay, you have your coverage in place.
Check out Foresters quick quotes for premium information.
Whole Life Cash Values
Another feature of a whole life policy is its cash value. As you pay your premiums, the value of your account can grow over time. In fact, some use whole life insurance policies as investment tools.
Some whole life insurers even allow you to borrow the cash value back out of the policy. This can be an interesting option to consider if you’re saving for college or retirement.
Term Vs Whole Life Insurance
The other main type of life insurance you might hear about is term life insurance. So, how are whole life and term insurance different?
Remember, with whole life insurance as long as you continue to pay the premiums, you have life insurance converage. Upon your death, whether that is at age 37 or 87, there will be a payout.
With term insurance, your policy only covers you for the term of the policy. You could opt to pay for term insurance and pay the whole time, but when the term expires, you won’t have coverage anymore.
Get the Life Insurance Coverage You Need
Whole life insurance is one type of insurance that offers you the security you seek for your loved ones after you’re gone. With fixed premiums and a guaranteed payout upon your death, it’s the right choice for many seeking life insurance coverage.
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