Whole Life Insurance Quotes

Unlike term life insurance that only provides financial benefits for a specific period of time, whole life insurance provides individuals with valuable benefits during the entire course of their lifetime. This offers them the peace of mind in knowing that their family and loved ones will have guaranteed financial protection whenever they pass away. Whole life insurance also has a valuable savings vehicle referred to as cash value that provides policyholders with added financial benefits. This comprehensive and dynamic type of insurance may be slightly more expensive than other forms of life insurance, but the benefits often outweigh the extra expense.

 

Benefits of Whole Life Insurance Policies

The death benefits associated with whole life insurance are fixed. Some forms of insurance may offer variable benefits, but whole life policyholders benefit from knowing the amount of their benefits from the inception of the policy. Typically, the more significant the benefits are, the higher the whole life insurance quotes will be.

Costs of Whole Life Insurance Policies

Whole life policyholders must pay a set premium for maintaining their policy. Due to the fact that whole life policies offer coverage throughout the lifetime of the insured, rather than for a limited period of time like term life insurance, the costs of maintaining whole life insurance are slightly higher than term life insurance. The added benefit of having the cash value retirement account is also a deciding reason for increased coverage costs. The life expectancy, current state of health, and other deciding factors also affect the price of whole life insurance quotes. However, insured individuals can benefit from knowing that their premiums are fixed and will not increase over time.

Cash Value Account

As mentioned, another benefit of whole life insurance is the automatic savings vehicle attached to every policy. This cash value account is typically used to fund retirement, but it can be readily available to fund any other ventures or expensive life events. Unlike premium pricing, the cash value account does not appreciate at a fixed rate. Instead, its appreciation is dependent upon the market performance of the chosen underlying investment instruments, which are handled by the professional investors of the insurance company.

Associated Risks

An individual entertaining the notion of adding a life insurance policy must decide between whole life insurance and term life insurance. Term life policies may be cheaper, but they do not offer permanent protection or a cash value account for the insured. Depending upon a person’s individual situation, there is a risk of becoming over-insured and purchasing more protection then they need or can afford. Thankfully, there are no interest rates associated with a whole life policy due to the fixed nature of the policies and premiums. There is also the possibility of suffering losses to the cash value if assets begin to perform badly, but the risks are negligible in comparison to the profit potential.

Whole Life Variations

Rather than having only the traditional whole life policy to choose from, whole life insurance also provides individuals with policy variations, such as universal whole life and variable whole life. The flexibility of universal whole life actually causes the premiums, cash value account, and death benefits to fluctuate. Essentially, the amounts of each vary according to the minimum payment. If an individual pays more than the minimum monthly payment, then the excess money is invested in the individual’s cash value account. Variable life policies actually let the insured individual decide on their investments, which affects the cash value account and the amount of death benefits their heirs will receive. However, variable whole life policies offer the same fixed premiums of traditional whole life policies.

Whole life insurance may be slightly more expensive, but anyone considering attaining a life insurance policy to protect their loved ones in the event of their death should definitely consider its many benefits. With lifetime coverage, fixed premiums, and a separate retirement savings vehicle, whole life policies are a popular choice for those looking to gain as much out of their life insurance policy as possible. If you're considering such a policy, research on USInsuranceOnline.com for the best whole life insurance quotes today.