Insurance Quotes (Whole Life) - Explained - Policy Rate Quote Comparisons

The following are points you should be aware of whether you own or are thinking about purchasing Whole Life insurance. These points usually apply to any Whole Life policy regardless of the company. If you aren't sure, ask before you buy.

True Whole Life has a level premium and level death benefit. That means, your premium will not increase and your death benefit will not decrease, and if you live to age 100, your company will give you a check for the entire death benefit amount.

The death benefit is paid to your beneficiary tax free and avoids probate.

Whole life builds tax deferred cash value as time goes on. Should you decide to cash in your policy, you would only pay tax if your tax value exceeded the total premium you had paid into it. This seldom happens.

You can choose a "10 pay" or "20 pay" policy, meaning it will be paid up in either 10 or 20 years, and you will no longer have to pay a premium.

Try to buy enough to meet your family's needs in the event of your death. Buying more later will not only be more expensive, but if your health changes, additional purchases may be impossible.

Don't buy more than you can afford. Canceling a policy may wipe out your cash value due to penalties. It's better to have a little that you can pay for than to lose it in a few years and find out that you can't purchase any more due to your attained age or health.

Smokers will pay more with most companies although there are some policies for $25,000 or under that don't ask. Also, men often get a higher rate as do people with pre-existing medical conditions. Severe health conditions can prevent you from getting anything other than a "graded" benefit, meaning only a portion of the benefit would be paid if you died within the first two years after purchase.

Never cancel an existing policy until a new one has been issued. Furthermore, examine both policies carefully to make sure the change is in your best interests.

Ask about modified whole life as it can mean lower premiums in the beginning. Also, ask if the company has a term policy to whole life conversion possibility as this may allow you to get coverage very inexpensively but convert to whole life without medical underwriting when your finances are better.

Review your policy yearly, remembering to check the beneficiary. If your beneficiary dies before you do, the death benefit will be paid into your estate—which can create a very sticky situation for your family.

Check to be sure the company is financially sound, and, preferably, that it has been around awhile without being sold out, merged or bought by another company.

Choose an agent who will take time to help you figure out exactly what you need. Contrary to popular belief, not all senior financial advisors are experts in insurance. Also, ask about company policy regarding the servicing of claims. Will you be in the 800 number loop, or will you have a person who will respond quickly to do what you need. Ask around. What companies have your friends and family valued? Personal, long term trust will tell you more than a TV or internet advertising.

(Get A Quote Now)

On Another Note...

Why wait years to collect the money your owed? We Buy Insurance Settlements, Nationwide! We pay cash now for your future Structured Insurance Settlement and Annuity Payments! Free online or phone-in quotes.

Home | Privacy Policy | Terms of Use | Agents - Life Insurance Leads

Personal finance directory of sponsoring websites: