What is Whole Life Insurance?
Whole life insurance is insurance that pays your beneficiaries a specific, fixed amount of money when you die. It differs from term life insurance in that although term insurance only covers you for a specific period of time, whole life insurance will pay out as long as you've been paying your premiums. You can get more information on this through company websites that provide whole life insurance quotes.
Once you have whole life insurance, it can't be cancelled, revoked or reduced unless you stop making your payments or you commit fraud. This means that whole life insurance is very appealing, because it's pretty much guaranteed. It will never go down in value or expire, your whole life insurance rates will never go up, your loved ones are guaranteed a payout in the event of your death, and portions of your premiums also build up cash value that you can borrow against. To find some profitable plans, you can always check whole life insurance quotes online.
Should You Buy Whole Life Insurance?
It's a personal choice, and it depends on a lot of factors - your age, your finances, and what type of coverage you want to have. Usually, whole insurance rates are higher than a term policy. Your main concern is insuring that you have proper coverage, so if you're considering whole life coverage, you have to think about a few things. For example: selecting whole life insurance quotes initially from a licensed website.
First of all, consider that whole life insurance rates and coverage can be as much as eight times more than comparable term coverage. This doesn't mean that you should just throw up your hands and say "Okay, whole life isn't for me!" You could actually consider mixing whole life with other types of insurance. A good search on whole life insurance quotes that are available online can be a great problem solver.
Keep in mind, too, that your whole life policy is only going to benefit you for as long as you keep it. Frequently, people surrender their whole life policies when times get tight. It's important to keep in mind that the benefits of this type of insurance over the long run can far outweigh the costs i.e. whole life insurance rates.
You have cash value in your whole life insurance policy. What that means is that you can borrow cash against the surrender value of your policy. This can reduce or even eliminate your premiums later on, and it can also provide you with a source of ready cash if you should need it for emergencies. Anything you withdraw won't be taxed unless it exceeds the amount that you've paid into your policy. For thorough understanding of the life insurance plans it is recommended that you should read and compare whole life insurance quotes to find out which policy suits you better.
You can also use the cash value of your policy as collateral for third party loans. And if you have creditors, you don't have to worry about them being able to take your cash value, because you've designated a beneficiary - that money doesn't benefit you, so it's can't be seized. Whole life insurance rates thus do not affect the financial privilege which your beneficiaries deserve.
The Final Word
Your financial state at the time that you take out your whole life insurance policy will determine how you end up later on. Whether or not to buy whole life insurance is up to you. Look out for some whole life insurance quotes online. You should make your decision to buy an insurance plan considering the long term - what you'll get out of it, and what your family will get out of it. So make your decision accordingly. Do not let confusion of whole life insurance rates stop you from talking to an insurer.