Whole Life Insurance

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Whole Life Insurance

When to buy whole life insurance is something that many consumers wonder about. After all, in today’s uncertain times many consumers are not sure where they will find themselves five, ten or twenty years down the road. Whole life insurance can give some stability in such uncertain times. Understanding when to buy whole life insurance is essential for the well-being of your family and your own financial future.

First of all, you have to understand that whole life insurance is a “non-contingent” insurance. What this means is that the insurance does not require any premiums at the end of the contract. If an insured dies, no claim is paid out. This is the opposite of an “accidental” death scenario. In order for this type of insurance to be considered an appropriate investment, you must consider all of the upsides that you stand to gain from such an investment.

One of the best things about whole life insurance is the fact that you will not lose any of your money when you pass away. In the event of your death, your loved ones will receive a lump sum payment. If you had borrowed money from family or a bank, those institutions may still be obligated to pay you money based upon the interest rate you had stated in your loan agreement. With whole life, you do not have to worry about that.

Another benefit to whole life insurance is that you will have a benefit paid in the event of your death during the coverage period. Most people feel that the value of their life insurance policy would decrease over time. However, whole life insurance policies remain valued on a tax-deferred basis. This allows the policy owner to depreciate the value of his or her policy over time, just as you would with tangible assets.

Whole life insurance is also an attractive option for people who are already in the process of collecting a retirement pension. These individuals can purchase a policy that will pay out the full amount of their pension upon their death and allows them to use the money for any number of other reasons. It is important to note, however, that whole life insurance policies typically have lifetime ceilings on the amount of payments to the beneficiaries will receive. The only way to increase these limits is by taking out a new policy. Furthermore, whole life insurance is only beneficial if the insured party is still alive to begin with.

These are just a few benefits of whole life insurance. If you are an individual looking to purchase insurance, it is important to understand the different options available. There are many companies offering this type of insurance and the way to select the right one is up to you. If you are unsure which company would be the best for your needs, you can always speak to an agent or consultant who specializes in this field to assist you in making the right decision when to buy whole life insurance.

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