Is Whole Term Life Insurance For You?
Whole term life insurance is a contradiction of terms because whole life insurance and term life insurance are two completely different products. Term life insurance is a policy that you take out for a specific term, say ten years, and if you are still alive once that ten years is up you will need to renew or buy another term life insurance policy.
Whole life insurance is a policy that you plan to keep for the whole of life, or at least a good portion of it. Whole life policies are cashable, but because of the nature of the product you won’t really get a return on your investment unless you keep the policy for at least 15 years, and usually for 20 years or more.
Whole life insurance is considered to be an investment product because part of the money you pay into the policy goes toward investments like stocks or bonds or mutual funds. The other part goes to an actual life insurance policy. Because of the two products rolled into one, whole life insurance is not as inexpensive as a term life insurance policy. This is also true because the insurance companies fully expect you to cash in on this type of policy, where a term policy just disappears when the term is up and the insurance company keeps your investment.
Because of the long term nature of a whole term life insurance policy, your broker may not suggest it if you are a senior. Seniors typically see very low benefit for this higher cost product because they don’t typically live long enough to see a gain on the investment portion of their policies. However, if a senior is in very good health and perhaps has a family history of people who live to be very old, it may not be a horrible investment after all.
An insurance broker can give you all of your life insurance options and can tell you the details of each one. He can offer you different types of policies from different companies and help you decide which is right for your individual situation and needs. An insurance broker is a great person to talk with to learn all of these things. It is also a good idea to research the different life insurance options you may have online before contacting an insurance broker or agent to make sure that they aren’t trying to sell you products that you don’t need or want and are offering you the things that you do need and want.
Any life insurance is better than no life insurance at all, whether it is term life insurance or whole term life insurance. The peace of mind that your loved ones will be taken care of after you are gone is worth the price of the policy, and will certainly give your loved ones peace of mind as well. Go online or call your insurance agent or broker soon to find out what life insurance options will be best for you and your family.
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