Today more than ever it seems like the product offerings in life insurance are never ending. It’s important for you to have a handle on the types of policies offered. Over the next few weeks we are going to briefly highlight the different types of life insurance and when each may be a good fit.

When to buy which life insurance? 

Whole Life

We choose to end our series on the types of life insurance policies with Whole Life. This is another type of permanent life insurance and very similar to Universal Life. The main difference between these two is going to be the premium. On Universal Life policies you have the ability for flexible premiums depending how your policy is performing. With Whole Life policies you will have a constant premium and death benefit. Cash values can be present in whole life policies depending on many factors such as: interest rates, age of policy, and premiums paid in. There are variations of Whole Life that will contain no cash value. This is common in guaranteed issue Whole Life policies, which are purchased to cover burial costs.

When to buy:

  • This is a great product to for someone who is looking for a permanent policy, but wanting to see premiums stay constant.
  • This is ideal for someone who is a bit older and has no insurability. They would use this policy to cover burial costs. These policies have maximums tied to them, along with having be in-force for a certain period of time before the full death benefit will be paid out.
  • Ideal for newborns. Many times as a parent or grandparent you want to give the gift of life insurance to the newest member of the family. This is done for many reasons and can vary in death benefit. Certain carriers have specific programs for newborns and younger children so you can give the gift of life insurance, while at the same time helping avoid insurability issues later down the road.

 

Looking for a life insurance quote or have a question regarding your options or insurability?  Contact us today for a local agent near you!  Simply call 1-800-669-3959.