Is Term or Whole Life Insurance Right for You?
Whole life insurance is more complicated than term life insurance, but out of all of the permanent life insurance products, it is the most basic and easy to understand. Whole life insurance is a two-part product that pays a death benefit and has a savings component that accumulates cash-value over time. The policyholder can withdraw or borrow against the cash value once enough money has accumulated. A whole life policy may also be part of a tax-efficient strategy for the policyholder.
A whole life insurance policy will pay a guaranteed death benefit when you die no matter how long you have the policy and regardless of your age. It will remain in force for as long as you continue to pay your premiums. Premiums are fixed for life and will not increase or change over time.
One common question people have is, “how much more are whole life premiums compared to term life premiums?” Typically, premiums are three to five times more expensive for whole life insurance policies because a portion of your premium payment goes toward the cash value of the policy.
When it comes to life insurance, there is never a one-size-fits-all approach. It’s important to consult with a financial expert and insurance advisor to find the right solution for you.
Whole life insurance might be right for you, please give us a call. We offer a consultative approach so that you will better understand your life insurance options. You’ll become informed and empowered to make the right choice for you and your family.