Whole Life Insurance : Why Do You Need it?
Part of choosing a life insurance policy is understanding the different types of life insurance. There are two major types of life insurance - whole and term.
However, we will discuss more about whole life insurance. What exactly is a whole life insurance? A whole life insurance is bought on a permanent basis and the insurance remains in effect until the pay out of the policy.
The policy will pay out upon the death of the insured or upon an event as specified in the policy.
Whole life insurance has a few major benefits over term life insurance.
Guarantees
There is something that a whole life insurance can offer which term life insurance can't. It is stability. Whole life insurance carries stable premiums, a guaranteed pay out and guaranteed coverage.
If you sign up for whole life insurance, it is good because there are no limits as to time and usually, the pay out can even occur before death.
It Offers Cash Value
If these benefits do not seem attractive enough you should read on. One of the greatest benefits a whole life insurance policy can offer you is cash back. What is cash back? This means you can borrow against the money or even cash out early.
This is considered one of the best policies because you cannot get that with term life insurance as there is no cash value.
Usually any amount borrowed is not required to be paid back, but the borrowed amount is taken from the value of the policy. This means if a loan is taken and not paid back then the final pay out will be less the loan amount.
Flexibility
Most whole life insurance policy is very flexible. You can alter the benefit amount and change things according to your needs as years go on.
Other than that, it carries cash value. This means that you can cash out your money at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.
However, whole life insurance is not for everybody as the premium are higher but it is the best option for people that needs a secured future for their family.
So, go ahead and give your family members and your love ones comfort. Life insurance is important if you want a secured future.
However, we will discuss more about whole life insurance. What exactly is a whole life insurance? A whole life insurance is bought on a permanent basis and the insurance remains in effect until the pay out of the policy.
The policy will pay out upon the death of the insured or upon an event as specified in the policy.
Whole life insurance has a few major benefits over term life insurance.
Guarantees
There is something that a whole life insurance can offer which term life insurance can't. It is stability. Whole life insurance carries stable premiums, a guaranteed pay out and guaranteed coverage.
If you sign up for whole life insurance, it is good because there are no limits as to time and usually, the pay out can even occur before death.
It Offers Cash Value
If these benefits do not seem attractive enough you should read on. One of the greatest benefits a whole life insurance policy can offer you is cash back. What is cash back? This means you can borrow against the money or even cash out early.
This is considered one of the best policies because you cannot get that with term life insurance as there is no cash value.
Usually any amount borrowed is not required to be paid back, but the borrowed amount is taken from the value of the policy. This means if a loan is taken and not paid back then the final pay out will be less the loan amount.
Flexibility
Most whole life insurance policy is very flexible. You can alter the benefit amount and change things according to your needs as years go on.
Other than that, it carries cash value. This means that you can cash out your money at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.
However, whole life insurance is not for everybody as the premium are higher but it is the best option for people that needs a secured future for their family.
So, go ahead and give your family members and your love ones comfort. Life insurance is important if you want a secured future.
About the Author:
Understand life insurance in order to know what policy to get for yourself and for your love ones. Visit this website for more information on Life Insurance. It will help you make better decisions about the various insurances. Visit us now: http://www.getmylifeinsurance.com
posted by Credit Counseling at
10:15 AM
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