Top Questions about Whole Life Insurance Answered
When considering whole life insurance you will most likely have several questions. Below you'll find some of the most frequently asked questions and how we at Whole-Life-Policy.com can help you answer them. You can also request more information on whole life insurance here to get the process started.
Why would I go with a whole life insurance plan?
Unlike term life insurance, which will pay out a death benefit only if you die within the term of coverage, with whole life insurance your benefit will be paid out throughout your life, regardless of when you die. The disadvantage to this is that the premium will be much higher than with term life, but if you can comfortably afford the premiums then this may be the type of life insurance that is best for you. Whole life insurance may be an excellent tool for estate planning.
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Will my premiums change over time?
Typically the premiums remain fixed for the life of the policy and the premiums will include both the insurance payment for your death benefit, as well as payment into a savings account that grows over time. If you get a whole life insurance policy while you are young, then you may pay lower premiums initially and these may scale up with age. This will typically be outlined in your policy.
What happens if I can no longer pay my premiums?
One of the disadvantages of whole life insurance is that you have to pay premiums for the rest of your life. If, for whatever reason, you can no longer pay premiums, then you will lose the death benefit. You can however have the option to use the cash value of your policy to help pay for premiums when you're unable to make the payments; this option varies by plan and may not be available for whole life insurance policies. Over time, provided that you don't use cash value account for anything, your savings will grow in value.