The Whole Life Insurance Umbrella
There are numerous types of life insurance policies that fall under the umbrella of “whole” life insurance. These include pure life insurance, permanent life insurance, burial insurance, final expense life insurance and traditional life insurance.
These are all different names for the same thing — a whole life insurance policy.
There are different tactics of calling these kinds of policies different names and trying to present them differently. That’s pure marketing. It’s a tried -and-true sales technique so bear in mind, in the final analysis they’re all whole life insurance.
Whole Life Is The Most Desirable Insurance
Whole life insurance is one of the most desirable kinds of life insurance for seniors and the main reason is that the benefits are locked in for life. The costs are also locked in for life. Your price and your coverage never change. The benefits built into the policy are locked as well. You have them forever. There’s no point where they are cut in half or diminished. They are permanent until the end of your life. They do not go away or dissapear.
Let’s say you are 63 years young and you get a whole life insurance policy, which 99 percent of people that are getting whole life insurance get, you have these locked in benefits for your entire life. If you’re 63 and you get a whole life insurance policy, what it costs today, is what it’s going to cost in 30 years. The benefits that are built in the policy today, they will be built into the policy, forever until you pass away.
Again, these policies never expire, which is obviously a huge benefit that takes the gamble away from the policy. You know exactly what it’s going to cost forever. You know exactly what your loved ones are going to receive forever. You know it’s going to be the same and these policies also build in cash value over time.
We want to emphasize that this is considered more of an emergency fund so you don’t want to just dip into it, pull that money out because it will impact your loved ones at pay out time after you die. But, the money is still there just in case and that’s re-assuring.
Accessing Funds When Needed
Let’s say you have a $10,000 policy and you pull out $3,000. When you pass away, your loved ones will receive approximately $7,000 so it’s less money that they were supposed to get. Technically when you pull that money out, there’s a very small interest loan that is created and that’s how it impacts your loved ones. You have the money there if you need it, but again, it should only be considered as an emergency fund. You want to just not touch it unless you absolutely need it and then it’s there. You can be sure it’s available for you if you do need it.
Typically these whole life policies are going to be $5,000 to $40,000 if you are in exceptional health and you’re under the age of 65 you might also have access to what’s called a jumbo whole life insurance policy. These work exactly the same way as the other whole life insurance policies, but the prices are lower. The value of your policy will be sent to you in the mail and they’ll process it right away while you’re alive if you get diagnosed with a terminal illness because the insurance companies know you’re going to need the money. Now, if you do exercise this type of a living benefit and they send you all of your face value, that ends the policy.
They’ve paid it off. They’ve paid you. You’re done making payments. No more obligations. That’s it. You got your money. You can always go out and you can get reinsured. You can call your agent and tell them you cashed out of your policy and want to re-insure. You got the full face value of your $40,000 of life insurance. Now you can buy another policy if you wish.
Yes. You can do that. So bear that in mind that it’s legal. It’s ethical. You have the right to do that.
Living Benefits With Whole Life Insurance
There are other living benefits that may be on your policy or may not. Whole life insurance policies can also offer significant discounts on prescription medicines, dental work, eye wear, hearing aids and batteries. They offer from 10% to 60%. More often it’s 30% to about 50% discounts on those things. Even legal fees. So these are living benefits that can be built into your policies.
It doesn’t have to just benefit your loved ones upon your death. It can also be a whole life insurance policy that can save you money while you’re alive. Sometimes the savings can outweigh the actual cost of the policy, so it can be very significant and it’s worth looking into.
Whole Life Policies Are More Flexible
Another whole life insurance benefit that some people may not be aware of, is that life insurance companies are more lenient with their underwriting.
What that means is if you have medical conditions that you’re concerned about, a lot of times you’re going to be able to get a whole life policy because because of that. They’re more lenient with
writing these policies. It’s good to be aware of that.
Life insurance companies have a whole lists of certain medical conditions that could disqualify one from getting the type of life insurance policy they need and want. It could be very frustrating for someone with medical issues to get a good whole life insurance policy at an affordable price. The best tactic in getting a good whole life insurance policy is for your agent to shop around the best life insurance companies out there and then bring it to your table.
Our company, Protect With Insurance, only works with A-Rated life insurance companies that generally are more lenient than lower rated life insurance providers. Because these A-Rated companies are more solid, more established and more financially stable, they can be more lenient in issuing whole life policies than other insurance providers would be.
All you have to do is give us an honest assessment of your health and your age and we go out there and canvass every life insurance company we work with until we find you the perfect fit with the best coverage possible at a price you can afford. We do all the heavy lifting. And we do it quickly.
Guaranteed Life Insurance for Serious Medical Issues
Now, if you have severe medical conditions, there’s a life insurance policy option called a “guaranteed” issue life insurance policy.
If your age is 50 to 80, they don’t ask a single medical question. It’s guaranteed approval. The only downside of these guaranteed issue life insurance policies is that they do not have living benefits. Also, they have what’s called a two-year waiting period. It doesn’t mean you have to wait two years to get the policy. What it means that if you die within two years of getting the policy your loved ones can only receive what you’ve paid into the policy plus 10%. So it’s 110% return to your loved ones.
However, if you live past the two year threshold and die shortly afterwards, your family can collect the full-pay out after your death. It’s a gamble between you and your life insurance company. You are basically betting that no matter how sick you are, no matter your medical condition, you are going to live past those initial two years. The life insurance company is going with the odds that people diagnosed with certain serious medical conditions like severe diabetes with neuropathy, serious heart conditions, extremely high cholesterol, morbid obesity, etc. will die before the two-year mark, thereby not having to pay out the agreed monetary coverage.
Yet, for those with no hope of being approved by a life insurance company for whole life insurance with benefits, the best option for them remains in getting a guaranteed issue life insurance policy.
It’s guaranteed. They can’t be denied. It’s something they can leave behind for their families should they live past the allotted two years.
That’s how guaranteed issue life insurance works. It’s guaranteed because they approve everybody. Even if you have a terminal condition and the doctor says you have 12 months or less to live, you can still get one of these guaranteed issue life insurance policies.
If you pass away in the first two years, you outlive that two year mark, it’s a hundred percent payout of the face value of the policy whenever the death occurs.
We hope this has been helpful. Please let us know. Reach out to us, email us at hello@ protect with insurance.com if you need more information.
Please reach out to us at firstname.lastname@example.org or even better, give us a call at (928) 323-0933 or start a live chat. You can click on one of the contact links below as well. We’d love to help you get a perfect insurance policy that will meet all your needs and in in your budget.