Speak with an experienced advisor! (800) 208-4575In this article we will do a comparison between term and whole life insurance policies. Keep in mind that this is not an “either or” decision you have to make when purchasing an insurance plan. Some people, depending on their budget and financial needs will have a combination of term and whole life plans. Not to confuse the subject but there are other types of life insurance plans available that may work for your financial goals but it is always best to consult your licensed life insurance professional for complete information for your specific needs. You can contact us at: 800-208-4575.
Term life insurance lasts for a certain period of time such as 10, 15, 20, or 30 year terms as long as you pay the premiums for that term. It will only pay the death benefit to your beneficiary if you die within the designated time period of the term policy.
A whole life plan lasts for your whole life as long as you pay the premiums and when you die it pays the death benefit to your beneficiary.
Term life and whole life features to consider are:
The monthly payments are usually cheaper with a term plan than a whole life plan.
With a term plan you can get more coverage for a smaller monthly payment which usually makes it more affordable for younger people. A larger term plan can be a good choice for those that have car payments, mortgage, student loans, credit cards, etc. This can be good protection for a growing family that unexpectedly loses the primary breadwinner so that they will have the funds to maintain their current living standard as long as possible. There are term policies that can be converted to a whole life plan but it is best to discuss this with your licensed life insurance professional to discuss if your policy has this option available and how to correctly handle the conversion. Call us at: 800-208-4575
A whole life plan is usually, but not always, a smaller coverage amount. This smaller coverage amount is commonly used to pay for funeral expenses and depending on the amount of overage and the cost of the funeral there may not be any extra money left over for additional expenses the insured leaves behind.
After about age 50 the price gap between a term policy and a whole life plan is not as large because insurance rates increase as you get older and until they are locked in by purchasing a permanent whole life plan. A term plan has to be renewed at the end of each term and your amount of payment is based on the current age of each term policy. With a whole life plan the rate is locked in for your whole life and as long as your payments are kept current the rates will never go up. The whole life plan can seem more expensive in the beginning but over your lifetime can save you a considerable amount of money.
A whole life insurance policy provides death benefit and after several years will build cash value. This cash value can be borrowed and withdrawn from the value of the policy in times of need or can be accumulated to increase the value of the policy. Speak to your life insurance professional for more information on your policy. Call 800-208-4575.
When choosing to purchase a term policy or a whole life policy remember that this does not have to be an “either or” choice. There are people that have more than one plan when it fits into their overall plan and budget. If in your case you have to choose. There are certain factors to consider and your life insurance professional can help you find the best plan and provide you the coverage that best fits your situation.
Here are some of the most common things to consider: Your current age, budget, health, the age of your children if they are living in the home, and who will be the primary beneficiary or one responsible for paying for your final expenses such as for the funeral and other expenses or bills.
Financial considerations: are you planning coverage for just the funeral expenses or for additional expenses such as for car payments, credit cards and other loans, mortgage, student loans, hospital or other health related expenses. There are other considerations such as planning for retirement, estate planning, and other future needs such as college funding for children. Some people will even leave money to their favorite church or charity especially those who may not have a direct heir. Your life insurance plan has the ability to provide much more than just provide a death benefit. Again your life insurance professional can help you. Call: 800-208-4575
If you are age 60 and just now starting to consider life insurance your needs are usually different than those of someone younger that still has children still living in the home. Most likely you have paid off your mortgage or haven’t many years left to pay on it and are looking at retirement in just a few years. A whole life plan may be a better option for you that will cover your final expenses so that your spouse isn’t left with that burden. Depending on your budget and the expenses you do have you may look at a larger whole life plan or a combination of a smaller term than you would have needed at age 30 and a whole life plan.
There are so many flexible options to meet the individualized options people need that it is advantageous to contact your life insurance professional to design a plan that fits your unique situation. Call us at 800-280-4575
Please keep in mind that the longer you wait to purchase your plan the higher the rates. Life insurance is based on the age you are when you take it out. So the younger you are the better your rate will be. Another consideration is your health. The older you are or the longer you put off getting a plan you are taking the risk of adverse health conditions taking place that would affect the rate the insurance company would charge for the policy. Such health considerations would be diabetes with complications, COPD, kidney disease, heart attack, cancer, stroke. It is wise to purchase a plan before a bad health history comes into play. If you already have health issues and are considering a plan please contact your life insurance professional who can help find the best plan and insurance company for you. He is able to provide coverage for many conditions and will work with you to provide you the very best for your situation. We are trained to help you and our desire is to provide you with superior and compassionate service. Call us today: 800-208-4575.
