Dec 06

Whole Life Insurance Explained – A Brief Education

Dealing with death at any stage of life is not something anyone wants to do. This makes most reluctant to even think about life insurance, but this could be a mistake. You will want your family to be provided for in the event of and beyond your death and the only way to do this is to prepare for it in advance.

The easiest way to leave your family with savings and to pay debts and funeral expenses is to provide them with a life insurance policy. You will have the choice between a number of different life insurance policies and you will need knowledge to determine which is right for you. This short education on whole life insurance is intended to enlighten and empower you to protect your future.

Whole life insurance explained:

Whole life insurance is a type of insurance that will last the whole of your life. Many young people would benefit the most from this type of policy since the premiums are considerably lower the younger you ar. Term life insurance will only last you for a certain fixed period and will have a specific death benefit, fixed premium, and term.

A term life plan generally carries a higher death benefit but you will have to prove that you are medically insurable at the end of the term. The end of the term is usually 20 to 30 years later when you will be much older and possibly in bad health. If you renew one of these policies your premiums will also be readjusted for your age if youre still insurable.

A great alternative to these fixed policies that will expire is a whole life insurance policy investment. You will earn interest on the premiums you pay and a portion of the premiums are put into a cash value savings and investment account that will continue to grow over the length of the policy. A whole life policy costs more than a term life policy, but your premium will stay the same from start to finish and as long as the premiums are paid you will be sure to be insured until the end.

Whole life insurance policies are certainly excellent for young applicants since they can get a nice, low premium, secure a savings account and investment for the future, and be given the opportunity to increase the death benefit in incremental amounts of years. Once the insurance is in place and you continue to pay for it, you will always have it to fall back on if you become ill, unemployed, or uninsurable.


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