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.
Let's focus on whole life insurance for a moment. Whole life insurance is life insurance that is bought on a permanent basis. Whole life 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.
I am sure you are dying to know why you should choose whole life insurance over term life. Let me tell you why.
Guarantees
One thing that whole life insurance can offer is stability. Usually, whole life insurance policy gives out a guaranteed pay out and it carries a stable premium 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.
Cash Value
One of the best benefits of whole life insurance is that you can enjoy its cash value. What is cash value? Cash value means you can borrow or cash out the money that you have paid into the policy.
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
Whole life insurance policies are quite flexible. You can add onto the benefit amount and change things as the years go on and your needs change. Just because you started the policy with certain terms does not mean it has to stay that way throughout the policy.
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, you have to take note that this policy is not suitable for everyone. The reason is that the premiums are much higher than a term life insurance. However, if you need stability this is the best choice for you.
So, go ahead and give your family members and your love ones comfort. Life insurance is important if you want a secured future.
Let's focus on whole life insurance for a moment. Whole life insurance is life insurance that is bought on a permanent basis. Whole life 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.
I am sure you are dying to know why you should choose whole life insurance over term life. Let me tell you why.
Guarantees
One thing that whole life insurance can offer is stability. Usually, whole life insurance policy gives out a guaranteed pay out and it carries a stable premium 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.
Cash Value
One of the best benefits of whole life insurance is that you can enjoy its cash value. What is cash value? Cash value means you can borrow or cash out the money that you have paid into the policy.
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
Whole life insurance policies are quite flexible. You can add onto the benefit amount and change things as the years go on and your needs change. Just because you started the policy with certain terms does not mean it has to stay that way throughout the policy.
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, you have to take note that this policy is not suitable for everyone. The reason is that the premiums are much higher than a term life insurance. However, if you need stability this is the best choice for you.
So, go ahead and give your family members and your love ones comfort. Life insurance is important if you want a secured future.
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Get a good understanding of life insurance in order to know what policy to get for yourself and for your family. Visit this website for more information on Life Insurance. It helps to understand more so that you can make better decisions about the various insurances. Visit us now: http://www.getmylifeinsurance.com
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