One of the first and most important decisions you will need to make when purchasing life insurance is whether you want to purchase whole life or a term life policy. Whole life policies are designed to cover you for the rest of your life assuming you continue to pay your monthly premium on the policy. Term life policies on the other hand, are designed to provide coverage for a predetermined period of time. While there are benefits that come along with both types of policies, whole life policies offer some truly unique benefits that are worth considering. Learn more about three of these benefits below.
No Need To Worry About Qualifying For Future Policies
While you may be in good health right now, there simply is no way to predict what the future may bring. If you find yourself dealing with a serious medical condition in the future, this condition can have a huge impact on your ability to qualify for any type of life insurance coverage. This can be a serious problem if you purchase a term policy that expires before your death and you are not able to qualify to renew this policy or purchase a new one. With whole life policies, you do not need to worry about your ability to qualify for future policies since your policy will remain in effect as long as you are still alive and still paying your premiums.
Benefit From Your Life Insurance While You Are Still Alive
While it is true that the primary reason for obtaining life insurance is to protect your loved ones financially in the event of your death, whole life insurance policies also provide you with the opportunity to benefit from the purchase of this policy while you are still alive. This is because over time a whole life policy actually accrues equity, which you can then borrow against. In the event, you were to die before being able to repay the borrowed funds this amount would simply be deducted from the final payout of the policy.
Don't Risk Paying For Something You May Never Use
Term life insurance policies are the perfect example of a product you hope to never get to use. After all, in order to benefit from these insurance products, you will need to die before the policy term expires. Essentially this means that the best-case scenario when purchasing these term policies is that you are paying for something you will never actually use. Investing in a whole life insurance policy ensures that there will be a return on your investment even if you live a long, full life.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.