What his whole life?
Whole life insurance is a life insurance policy that is guaranteed to remain in force for the insured’s entire lifetime. It’s a policy that’s never going to expire. It’s typically considered the absolute best kind of life insurance.
At first glance, it appears it has one major drawback. It costs a lot more to get a $100,000 whole life policy than it does to get a $100,000 term policy. However, a term policy will expire and the terms can raise in cost.
A whole life insurance policy will never increase in price. If it’s a universal whole life policy, it will increase in price. Most people chose a basic $5,000 to a $40,000 whole life insurance policy.
Higher amounts of whole life insurance policies with more than $40,000 or $50,000 in coverage require a better health rating. That means you can only have one prescription and no major diagnoses at all. In fact, you have to be careful with the minor diagnoses. If you have mainstream diabetes, that’s fine, but not if you take insulin. It’s okay if you take Metformin for diabetes.
Who gets the Best Advantages of Whole Life?
The main advantage of a whole life insurance policy is that for most people it’s the last policy you’ll ever need.
So regular whole life insurance is not going to change in price. It’s not going to change in coverage. It is locked in until death. It doesn’t matter if your death occurs in three years or in eighty years. If a whole life insurance policy is purchased for your children when they were young; they’ll reap the benefits in later life. Getting a whole life insurance policy for your children is a very inexpensive way to get them a great life insurance policy.
You can always transfer the policy over to them if you like. As you get older, they can become the owner of the policy and the payer of the policy. It’s a fantastic way to go. So, if you have kids or even grandkids, I highly recommend that it’s a lifelong gift and it’s a way they’ll always think of you. But more importantly, is that your loved ones will be protected. So it’s just a very great thing to do.
What is the Drawback to Whole Life Insurance policies?
There’s really only one drawback. Whole Life has lower coverage than term insurance. If you’re wanting to get a $200,000 to a million-dollar affordable policy then you’re going to need a term policy. However, you need to be healthy enough to get it. That’s what it comes down to. If you’re not, and you’re under the age of 71, you can get what’s called an Accidental Only policy.
If you’re not sure what type of plan best suits you, give us a call or start a chat now.