Some life insurance products are temporary, while others are permanent. Whole life insurance plans are considered permanent plans that protect you for the entirety of your lifespan, as long as you continue to make your premium payments.
Our mission is to keep you updated on the policies available to you.To stay true to this mission, here is everything you need to know about whole life insurance.
Whole life insurance is permanent, therefore it will not expire when you reach a certain age. As long as you have made your payments appropriately, the contract will pay out a death benefit to your beneficiaries when you pass away. The death benefit is a cash amount that is decided in your policy at the time of signing.
Whole life insurance policies are usually held for long periods of time, therefore they typically offer larger death benefit payments than term life insurance policies or other short term plans. The average whole life insurance plan has a death benefit ranging between $10,000 and $100,000, but sometimes the benefit payment can exceed $1 million.
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Whole life insurance is not very expensive, though it can amount to a noteworthy expense every month depending on what level of coverage you choose. In general, you can expect your whole life insurance policy to cost anywhere between $40 a month and $150 a month. This amounts to between $500 and $1,500 per year. This is significantly more than term life insurance, so you must decide if the additional cost is worth permanent protection.
Whole life insurance plans offer a unique advantage that is not available with term life insurance plans. These plans can build up cash value that you can tap into throughout your life. The amount of money you have access to depends on how long you have been paying your premiums. If you decide to take a loan from the value of your insurance policy, you will have to pay that amount back in order to claim your full death benefit. If you fail to pay back the amount you borrow from the policy, your death benefit will be reduced by the missing amount when you die.
To qualify for whole life insurance, you must prove that you are in adequate medical condition to not be an unreasonable risk to the insurance company. This means you must take a medical exam and answer some medical questions. People who are younger are usually more capable of qualifying, and they will be welcomed with much lower rates than older individuals. This makes it a good idea to purchase whole life insurance early in life, because your premium rates will never change.
Find The Right Whole Life Plan
If you are purchasing an insurance policy for life, you want it to be the right one. T&T Insurance will help you compare plans and find one that fits your specific needs.
To get started with a personalized insurance consultation, give us a call at 800-MI-NORTH (800-646-6748). You can also visit our office in Petoskey, MI.