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I have term life insurance should i also have whole life insurance?
Wiki User
∙ 11y ago
The answer to that question is in the love you have for your family and the character that you do or do not have. Here is the question...Do you want to have life insurance in force when you die? Do you want to have insurance to pay for the burial, tombstone, cremation, all final expenses, left over medical bills, final ride in the ambulance, cemetery plot, perpetual care, probate, estate taxes, etc etc? All is well with term insurance if it is in force when you die, but like most people you don't know when you are going to die and usually it is after the term insurance has expired or you let it lapse because you can't afford it anymore or your future health prevents you from buying any more. I suggest to ALL my clients that they should have at least a burial policy as a minimum. Term insurance is pure profit for the insurance companies as only 2% of all policies ever pay a death claim. Think about it...
AnswerUnderstanding the differences between whole life policy and term life policies will help you to see whether you would like to purchase both kinds of policies for your specific situation.Whole life insurance suits the person who has expenses that do not diminish over time such as estate taxes, etc. Whole life insurance can also work as an investment. There is cash value attached to whole life insurance after a certain number of years, which the owner can avail of in times of need.
In comparison, term life insurance offers no cash value. And once the term is over you do not get any refund on your premiums, unless you opt for a ROP term policy.
Term vs. Whole Life Insurance may help you grasp the features of both these policies.
Wiki User
∙ 11y ago
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What is interest-sensitive life insurance?
Interest-sensitive life insurance is a type of whole life insurance where the cash value can increase beyond the stated guarantee if economic conditions warrant. This is also called current assumption whole life insurance.
What are the benefits of purchasing term assurance?
Term life insurance will protect the policyholder should his or her life end unexpectedly. Term life insurance is often the cheapest of all available insurance. Usually, term life insurance can be converted to whole life insurance during the term. Whole life insurance will never expire and the rates will remain constant throughout the policyholder's life.
Where can one compare whole life insurance?
Many insurance companies offer a way to compare whole life insurance rates. They also offers comparisons for term life insurance rates as well. Nationwide even offers a feature that will help someone decide how much life insurance coverage might be needed.
What benefits does whole life insurance offer?
Although whole life insurance does tend to require payment of a premium every month, it also gives the owner the piece of mind that their premiums will never increase. Whole life insurance programs also offer quite a bit of flexibility if the owner experiences changes in life. For example, if an injury does occur, some or all of the premiums may be paid for you by the company. You may also take money out of your program if needed, however this is not recommended. Overall, there are many benefits to whole life insurance, the purchaser must also take their future plans, income level and potential health risks when making decisions about whole life or term life insurance policies.
Where can one get whole life insurance?
New York Life if one reputable company which offers whole life insurance. You can apply and receive quotes for whole life insurance policies online or by contacting a representative.
What types of insurance is also known as ordinary or straight life insurance?
whole life insurance
What is the difference between life insurance and whole life insurance?
The key difference between life insurance and whole life insurance is that regular life insurance carries a fixed term while whole life insurance covers one's entire lifetime. Whole life insurance also accumulates a cash value that one can borrow money against.
What kind of life insurance should you get?
When deciding what type of life insurance to get, someone can choose between term and whole life insurance. Term insurance pays out when a person dies and whole life can be cashed in if you need the money early.
Should I look for affordable whole life insurance, or is it better to just buy a term life insurance policy?
Whole life insurance does come with several benefits. I would personally suggest term life insurance the the cost savings.
What is interest-sensitive life insurance?
Interest-sensitive life insurance is a type of whole life insurance where the cash value can increase beyond the stated guarantee if economic conditions warrant. This is also called current assumption whole life insurance.
What does Liberty National life insurance offer?
Liberty National life insurance offer not just life insurance, they offer term insurance, whole life insurance. They also offer supplemental health insurance.
What should you look for when doing a life insurance comparison?
You should look at rates based on your age and other demographics. You should also compare term, whole and hybrid insurance to see what best fits your needs.
What are common questions about life insurance that one should ask the life insurance agents before buying a policy?
Common questions about life insurance that one should ask the life insurance agents before buying a policy are if it is term or whole life insurance and how much it cost.
what are the advantages of long term life insurance vs whole life insurance?
The basic difference between long term life insurance and whole life insurance is that a term policy is life coverage only and this is also considered an advantage. One can buy a long term life insurance for periods of one year to 30 years, whereas whole life insurance is a combination of a term policy with an investment component.
What are the benefits of purchasing term assurance?
Term life insurance will protect the policyholder should his or her life end unexpectedly. Term life insurance is often the cheapest of all available insurance. Usually, term life insurance can be converted to whole life insurance during the term. Whole life insurance will never expire and the rates will remain constant throughout the policyholder's life.
What is the definition of the term 'whole life insurance'?
A whole life insurance provides coverage for an individual's whole life. A savings components which builds overtime and can be used for wealth accumulation. Whole life is the most basic form of cash value insurance.
Should I purchase term life or whole life insurance?
Term life insurance does not build up accumulated value and ends when the insurance policy period ends. Whole life insurance does build up accumulated value, has tax advantages, but costs more than Term Life insurance. You can determine which product better meets your insurance needs.
