Why Whole Life Insurance Might Be What You Need
Once you start to submit information online to get life insurance quotes, you will be presented with many different types of insurance. You are probably familiar with many of the most popular ones, two of which include term life and whole life policies. Term life policies are the ones that do not have an associated savings plan, which is sometimes an annuity. Term life policies have a larger death benefit, and tend to be less expensive. The other type of policy is a whole life policy which does include a savings account. You are going to pay more in premiums for this type of insurance, but simultaneously, building up that annuity which you can use during the course of making payments on that policy. Let's look at whether or not you should get a whole life policy, as well as the benefits of owning one.
Term Life Versus Whole Life
As mentioned earlier, a term life policy is the most simplistic form of life insurance. You will make a payment every month, or every year, and you will be covered by the death benefit. In the event of your death, that death benefit will be paid to the beneficiary that you have named on the policy. If you are married, this will likely be your spouse. This money can be used to take care of your family until they can get jobs, making sure that they can survive you are gone. These policies tend to be the most popular because they are the cheapest to obtain area and however, a whole life policy will also pay a death benefit plus a lump sum from the annuity or savings plan that comes with the policy. The extra premiums that you will pay our partially being diverted into this account. That is really the only difference. Although some people will state that term life is always the best way to go, there are many positive arguments for obtaining a whole life policy instead.
Why You Should Get A Whole Life Insurance PolicyThe reason that a whole life insurance policy is going to be a better option for many people is that they would like to take advantage of that savings program. It is so easy for people to forget to save money for their child's education, or even have a rainy day fund that can help them when an emergency occurs. The money that you are paying into this policy, some of that will be in that savings portion which you can access at any time. It's something that we tend to forget about, but when emergencies do happen, we can always have that available.
If your goal is to not only protect your family in the event of your death, but also have a savings program, whole life policies will help you achieve both goals. You will likely get a good interest rate on the money, and simultaneously, protect your family by making sure that they will have a death benefit is that time ever comes.