insurance

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

I chose to buy a whole life insurance policy and I love it. The best part about buying the whole life insurance policy is that it is not subject to any loses in the financial market.

What Are The Benefits Of Whole Life Insurance Policy?

If you have been thinking of buying a life insurance investment plans then the whole life insurance offers you good amount of coverage. It is not like the term insurance plan that offers coverage for a set time period only. The whole life insurance policy offers coverage for the entire term of the policy. There are also ample benefits when you come to check the financial aspect of the whole life insurance policy. It offers benefits that are way beyond the death benefit protection that the insurance policy covers.

The Features Of A Whole Life Insurance Policy

Are whole life insurance plans worth it? You need to be sure to understand the features of all kinds of insurance policies. The features of a whole life insurance policy are beneficial and it offers protection in a number of ways.

  • The protection that the whole life insurance policy offers is not subject to any volatility in the stock market
  • The cash value of the money that you have put in the policy grows by a fixed amount. The fund gets built over time which is not at all affected by what happens in the stock market
  • The whole life insurance offers you an additional income which you can benefit all your life.
  • There would be times when there would be requirements for some additional financial resources to fund some of your expenses. You could use your whole life insurance policy to fund these expenses when in need. There is no penalty for accessing the money from the whole life insurance policy and you can borrow form the cash available for any reason and you can also pay back. The only thing to keep in mind is that when you borrow money it will incur interest and this will also reduce the death benefit and the cash value. This is reduced by the amount of loan that is outstanding.
  • There are some whole life insurance polices that will pay out annual dividends. You can use this money to buy some additional life insurance policies that will increase the death benefit. The dividend however is not something that the policy will guarantee you.

Make sure that you know of the key features of the whole life insurance policy before you buy one.

When Should You Buy The Whole Life Insurance Policy?

The whole life insurance policy is a type of insurance plan that offers coverage for the insured’s entire life. The policy will offer you fixed premiums and a guaranteed death benefit, the policy is deigned in order to provide cash value that is tax free. Thus the while life insurance policy offers life insurance coverage as well as lets you save for the future.

You need to buy a whole life insurance policy when you realise that you need life coverage for all your life. This means that you need permanent coverage for your life. This saving element of the whole life insurance policy lets you pay premiums towards the policy and builds up cash.

The premium amount that you pay towards the whole life policy will be more than what you pay towards a term policy. But if you calculate then the premium would be less than if you had to keep renewing your term plan.

So for those who want to be assured that they have life insurance coverage for all their lives, a whole life insurance policy is a good option. It could easily fit into your retirement planning.

What Makes Whole Life Plan Different From A Term Insurance Plan?

The whole life insurance policy offers coverage for the entire life of the policyholder. This is if the policyholder keeps paying the premium towards the policy and does not surrender the policy. The life insurance policy will only offer coverage for a fixed term that is as per what us stated in the term policy.

The Types Of Whole Life Insurance Policies That You Can Choose From

There are different categories of whole life insurance policies and you need to do your research to understand what policy you need.

  • The non-participating whole life insurance

This is a policy that will have a level premium and a face amount all through your life. The fixed cost is the major advantage of this policy and the premium payment is less. The policy will not be paying you any dividends.

  • Participating whole life insurance

The policy pays dividends to you. The dividend is as per the company and as per the earnings that the company makes. It is also dependent on expense saving and favourable mortality. The dividend could be paid to you in cash or can be used in order to reduce the premium that you pay. It could also be used to purchase an additional insurance if you wish to. However be clear that the company may not always pay dividends to you.

  • Level Premium Whole Life Insurance

The premium payment here is a level amount and the premium needs to be paid as long as the policyholder is alive. The early year’s premium calculation is sufficient to cover the current insurance protection cost. The excess amount which is the insurance earnings makes up for any less amount of premium when the annual premium amount was not able to cover for the annual insurance cost.

  • Limited Payment Whole Life Insurance

If you wish that you pay premium for a limited time only then opt for the limited payments whole life insurance policy. The policy will give protection for your whole life. The premium amount would however be higher because the timespan is short. You could choose 10 years or 20 years and the plan could also be as per age.

  • Single Premium Whole Life Insurance

As the policy name mentions here you just pay a single premium amount and you get coverage for your entire life. The policy is paid for and you do not have to pay any amount of premium now. The single premium will give you a quick cash and loan value and this is significant based on what the amount of the single premium is. This plan is mostly suited to those who want to make a onetime investment.

  • Indeterminate Premium Whole Life Insurance

This is similar to the traditional whole life insurance policy whole life insurance blog but here you can adjust the premium. The company will have its set premium amount based on the insurance factors. The company will keep changing the premium amount if there are changes to some factors related to the policyholder. There is however a cap on the premium amount that can be charged.

What Should You Know When You Buy A Whole Life Insurance Policy?

Disadvantages of whole life insurance- Many of the insurance companies will not increase the premium amount or the amount of sum assured for 10 years after you start the policy. After this however they could increase the premium amount.

You should know about this guarantee and how it operates. Many do not know that their premiums could be revised but if you know that then you will be prepared for the same.

What Could Affect The Whole Life Insurance Premium?

The premium amount that you will pay is dependent on the age, sum insured value, health and whether you smoke or drink. The premium thus increases with risk. The plan can be taken for either one or two people but it pays when the first person dies. You could opt for a rider with the policy like the waiver of premium because this helps to cover the monthly premium in case you are unable to pay the premium amount. There are some plans that could include disability benefits too.

Conclusion- Why Do I Think The Whole Life Insurance Is The Best

As long as you keep paying the premiums you will receive death benefit. This is not dependent on when the policyholder dies. This is not the case when you buy a term insurance plan because in case you survive and the policy tenure ends you do not get any benefits.

The whole life insurance pros and cons offers death benefits and premium as well. The guarantee is also huge in the whole life insurance policy.

There are many benefits whole life insurance reviews that you can enjoy when you have a whole life insurance policy. This is even when you are living. This is not the case when you buy a term insurance policy. Also the whole life insurance policy lets you build cash value. This is a saving form and offers a good growth rate and many tax benefits. There is guarantee that your cash value will grow. So why let your premiums go for a waste. Instead opt for a whole life insurance plan to reap better benefits.