Your Ultimate Guide to Finding the Best Whole Life Insurance Policy
If you’re shopping for the best whole life insurance, you’ll want to read this article to understand everything you need to look for to find the perfect policy for your unique needs!
A whole life insurance policy can help meet the financial needs of your family when you are no longer around. But if you’ve never bought life insurance before, it can be difficult to figure out how to find the best policy for your needs.
Thankfully, there are some tips you can use to help you find the best whole life insurance policy, for your specific circumstances.
In fact, if you keep reading, you’ll learn what it takes to find the right whole life insurance policy for you, even if you don’t know much about life insurance.
Let’s begin!
What is Whole Life Insurance?
There are many different kinds of insurance policies you can buy. Whole life insurance, is one of the more popular variations on offer.
With whole life insurance, you will have life insurance coverage that lasts your entire lifetime.
This is opposed to something like ‘term’ insurance which only covers you for a specific period of time.
Whole life insurance also allows you to experience something known as ‘level premiums.’
This means that your payments are going to stay the same. This can help make it easier for you to manage your finances, as you will know what financial costs to expect.
Whole life insurance can also provide a guaranteed cash return. This is determined by the cash value that has accumulated within the policy. This is helpful as it can provide a bit more certainty, in terms of what you will receive.
Do You Need Whole Life Insurance?
As mentioned above, there are different kinds of insurance on offer. Before you make the decision to invest in whole life insurance, take a moment to review the other options on offer.
You need to take a look at the reason you are investing in life insurance. You then need to think about finding a policy that best aligns with that reason.
If you only need insurance for a set period of time, for example, when your children are young, you might want to obtain term life insurance instead.
If you need some help deciding which kind of insurance product is best for you, then think about speaking to an insurance advisor. Try to find someone who will not make money as a result of selling you insurance. This kind of individual is normally known as a ‘fee-only’ advisor. This person is going to be the most likely to provide you with impartial guidance.
What Do You Want the Policy to Do?
Different kinds of whole life insurance policies are going to provide different levels of cover. This means that the policy will payout differing amounts.
The coverage you seek should align with the kind of coverage you want. If you just want your life insurance policy to cover your funeral costs, then you should think about obtaining a relatively modest policy. This might be a policy that covers you for $15000 or so.
But if you want to create a policy that will provide your children with a financial cushion, think about obtaining a larger policy.
For example, you may want a policy that provides them with the finances to pursue higher education. If that is the case, you will need to figure out how much further education is going to cost. You then need to pick a policy that will be able to contribute to these costs.
As you might’ve guessed, the larger the payout, the greater the life insurance cost is going to be.
Are You Willing to Go Through the Approval Process?
Different insurance companies will use varying approaches, before providing insurance.
Some companies are going to ask that you answer some questions regarding your health before they provide coverage. This is known as a simplified issue.
Some insurers, though, will ask you to fill out a detailed application form. They will also request that you take a medical exam. This is generally known as a fully underwritten policy. This kind of policy can, at times, provide you with the best insurance prices. This can be the case even if you have some health issues.
You will also find that some have an approval process known as guaranteed issue. This kind of approval process means that you will be able to obtain insurance, without being asked health questions.
You will also not be asked to take a medical exam. This kind of insurance is helpful for people that have not been able to obtain insurance, due to medical issues.
This kind of insurance is often a lot more expensive than the other kinds we have covered. Such forms of insurance also tend to provide lower payouts, especially if you die within the initial years of coverage.
What Is the Rate of Return?
Typically, a whole life insurance policy will include something known as a ‘cash value’ account.
This account acts like a savings account. Some of the money you pay as part of your premium is saved in this account.
As a result, the money in this account will grow slowly, like money in a savings account. Keep an eye on the rate you will experience. The higher the rate, the more this allocation of funds will grow in value, over time.
Ready to Find the Best Whole Life Insurance Policy?
Investing in whole life insurance is not always easy. But with a little bit of help, it is not too hard to find the best whole life insurance for your needs.
In this post, we’ve taken a look at some of the things you need to keep in mind when selecting a whole life insurance policy. You need to make sure you are aware of the different kinds of approval processes involved. You should also keep in mind the different cash return rates that are on offer.
As long as you pay attention to the details, it should not be too hard to find a whole life insurance policy that provides you with the coverage you are after.
Want to read more lifestyle content? Check out our lifestyle section to see some of our latest posts!
