Consumers who have decided that whole life insurance offers the financial protection they want for their families can use online quotes to compare policies, rates and companies to find affordable coverage. Completing your research on different companies and getting rate comparisons from each is essential when determining which policy has the lowest premiums and best fits your needs.
Whole Life Insurance
Most people ask “what is whole life insurance?” because term life is the most common and popular type of policy. Whole life insurance policies offer a fixed death benefit and premiums, as well as a cash value or equity feature. The amount of the death benefit is selected by the insured person to cover their family’s financial needs. Whole life then devotes part of premium payments to the savings feature, which grows over time and can provide dividend payments to the insured individual.
The premium payments must be continued over the insured person’s lifetime to keep the policy in effect. Once whole life insurance is paid up, the cash value remains an asset for your life time, allowing you to pull money out, use it as collateral, or leave it for your children. There are many different types of whole life insurance coverage available.
Limited Payment Option
Although the premium rates for limited payment whole life insurance online are higher than those of permanent whole life policies, they only have to be paid over a pre-determined time period, usually 10, 20, or 30 years. The policy then becomes permanent and no further premiums are due. The cash value can remain in the policy and the insured can use it as collateral for a no-interest loan or redeem part of the cash value to cover unexpected expenses without canceling the coverage.
Single Payment Policy
Whole life insurance may offer tax advantages and it is great for those preparing for retirement. Instead of paying premiums over time, a single payment is made at the inception of the policy. The payment is substantial, but much of it is invested in the cash value of the policy. Income earned on life insurance policies is tax deferred until it is withdrawn.
If the insured person opts for dividends, the policy can provide a small income for life while protecting family members from financial loss in the event of his or her death. In this sense, whole life insurance as an investment is a great option for families who have difficult savings a nest egg for retirement.
Adjustable Whole Life Insurance
Adjustable life insurance offers advantages to both young adults beginning an independent life and to older parents or seniors contemplating retirement. The flexible terms of adjustable whole life insurance allow the policyholder to alter the death benefit and premiums as financial obligations and income change over time. Like other whole life policies, an adjustable policy accrues a cash value which can be used in financial or estate planning.
Those who may face major income changes in the foreseeable future will appreciate the flexible terms of this permanent life insurance policy. However, life insurance companies structure their policies differently, and getting whole life insurance quotes can help consumers determine which policy offers the cheapest rates with the most benefits. By comparing quotes, consumers make certain they buy the best life insurance policy available at the cheapest prices.
Convertible Term Life Insurance
Term life insurance is the most affordable type of life insurance, but it offers no cash value. For those with a limited income, term life may provide the only life insurance option, but convertible term life insurance allows the insured person to convert the term policy into permanent coverage at a later date. To learn more about this option and if it is right for your family, review the pros and cons of each type of protection with our term vs. whole life insurance comparison.
Whole life insurance online comes with riders which can guarantee the payment of premiums if the insured person becomes disabled; guarantee the policyholder the right to increase the face value of the policy without submitting proof of insurability; or allow the insured individual to receive an accelerated death benefit to cover the expenses of a terminal illness before he or she dies. These options are offered as riders to the policy and each carries a separate additional premium, making whole life insurance rates more expensive, though flexible. The best whole life policy is really dependent on your budget and needs.
Double Indemnity For Accidental Death
There is a misconception among Americans that all life insurance policies pay double the face value of the policy in the case of accidental death. The payment of double indemnity for an accidental death benefit is offered as a rider to the policy with an additional cost. Depending on the rates, the accidental death benefit rider may be worthwhile for individuals between the ages of 18 and 55, since the leading cause of death in this age group is due to injuries caused in an accident. However, only getting free life insurance quotes online will give you an idea of the rates and coverage this type of insurance can provide.
Free Insurance Quotes
Whole life insurance online offers you and your family permanent coverage, the savings and investment potential to meet future financial goals, and finally the flexibility to choose your premium and coverage options. Comparing insurance rates and companies can help you buy the best whole life insurance at the most affordable price.