Whole Life Insurance Advice- When Should You Purchase?

by Jeff Rose on May 8, 2017 · 0 comments

in Permanent Insurance

When shopping for life insurance, the options between permanent, or whole life insurance and term life insurance can be confusing. Life insurance is one of the best safety nets that you’ll ever buy for your loved ones. It’s vital that you make the best decisions for your family. There are dozens of different types of plans that you can choose from and thousands of different companies that you can choose from. We know that finding the perfect life insurance can be a difficult process, but it doesn’t have to be. We can help walk you through the process to help you make the best decision.

You need to first decide where you are at in life, and what your long term goals with the insurance are.

If it is something you want to keep for a long period of time, whole life insurance will probably be the way you want to go.

With whole life insurance, it goes for the remainder of your life, whereas term insurance only goes for a set amount of time, and you have to renew it after that period ends if you wish to continue having life insurance.

whole life insurance adviceIf something tragic were to happen to you, and you didn’t have life insurance, your loved ones would be left with a massive amount of debt and other final expenses. Losing a loved one is never easy, but having to pay a mountain of debt is going to make the whole situation a thousand times worse, but that’s where a life insurance plan comes in. Nobody wants to think about his or her death, but it’s vital that you plan for the things that you can’t avoid.

In this article, we are going to look at the advantages of a whole life insurance policy and help you decide if one of these plans will work for you.

Whole Life Vs. Term Life

Although whole life insurance has higher premiums than term insurance, the premiums do not go up over time like the premiums in term insurance do. Plus, part of the money you are paying goes to a cash account, and if you were to cancel the whole term insurance for some reason, you would receive the cash value of it. Otherwise, your family members would receive the cash value upon your death.

Also, most of these policies automatically stop at age 100, so if you do live to 100, the insurance policy closes and you receive the cash value of it. It is a good idea to keep an eye on the cash value of your whole life insurance to see how quickly it is going up and how much is there.

With a whole life insurance plan, you can also borrow money against the cash value of the policy. If you do not have the money and interest paid back before you die, whatever you still owe will be taken out of the cash value before it is given to your family members. With a participating whole life insurance policy, you could get paid dividends if the return on the investment is good enough.

These are used many times to reduce the premium. Non-participating policies have premiums that do not change throughout the life of the entire policy, so choosing the participating policy is something that is worth looking into when researching different whole life insurance policies.

Buying Whole Life Insurance

Before buying into whole life insurance, make sure you really assess where you are at in life and what you really need in an insurance policy. Because of the larger premiums, it could take ten years before you see a return on this policy, and although it is meant to be a lifetime policy, this may not meet your financial needs for the immediate or the future. This type of policy might be best for high earners who have saved as much as they can in other tax-deferred savings, since the cash on this type of policy isn’t taxed until it’s withdrawn.

Whole life can also work for older people who have things like small businesses who want to leave something to relatives because the cash value of the policy could wind up being more than they could save on their own.

Getting Affordable Life Insurance Coverage

When you’re getting life insurance coverage, there are several ways that you can secure better rates from the insurance company. There are several changes that you can make that will help you save money on your whole life insurance plan. Whole life plans are not going to be the most affordable option, but that doesn’t mean that you have to have a plan that is going to break your bank every month.

One of the first things that you should do is cut out any tobacco that you currently use. If you’re listed as a smoker on your application, then you can expect to pay much higher premiums for your coverage. In fact, smokers are going to pay twice as much for insurance versus what a non-smoker is going to pay for the same sized plan. If you want to save money, then you’ll need to kick the cigarettes once and for all.

The next thing that you should do is improve your overall health. Before the insurance company accepts your application, they are going to require that you take a medical exam. The medical exam is going to play an important part of how much you pay for insurance coverage. If you want to get better rates, then you’ll need to improve your health. There are several ways that you can get better rates and save money on your plan.

The first thing that you should do is start getting regular exercise. Hitting the gym is a great way to lose weight, lower your blood pressure, and help improve your health, which is going to give you much better results from the medical income. If you want to save money on your life insurance, you’ll need to lace up your running shoes.

Another way to get better results is to stick to a healthy diet. Cutting out the junk food and switching it out for healthier options is a great way to improve your health. It’s going to help you lose weight, lower your cholesterol, and drastically reduce your risk of being diagnosed with diabetes or other health complications.  You can still enjoy your favorite food, but making a few simple healthier choices could have cut your insurance premiums and keep more money in your pocket.

Working With an Independent Insurance Agent

Every insurance company is different, and all of them are going to offer different premiums based on their underwriting and plans that they offer. That means that you could get drastically different quotes depending on which company that you get the quote from. That’s why it’s important to get dozens of quotes before you decide which plan is going to work best for you.

The best way to ensure that you’re getting the lowest insurance premiums for your whole life insurance plan is to work with an independent insurance agent. Unlike a traditional agent, independent brokers work with dozens of highly rated companies across the nation, which means that they can bring all of the best insurance plans directly to you.

Our agents have years of experience working with all kinds of applicants and we know which companies are going to give you the best rates based on your specific health and needs. We know that finding the perfect life insurance can be confusing, but that’s why we are here to help.

We can help you decide between a whole life plan or a term insurance policy. Life insurance is the most important purchase that you’ll make for the future security of your loved ones. It’s vital that you make the best decisions for your loved ones.

Whichever way you decide to go, make sure you sit down with a trusted and knowledgeable agent who is going to help steer you in the right direction for you. If you have any questions about whole life insurance or about the other options available to you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan to meet your needs. It’s our mission to help families get the protection that they deserve. Don’t wait any longer to get the insurance process started.

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