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Whole Life or Term Life Insurance?
Whole Life Insurance
Whole life is permanent, the price never goes up and as long as you pay your premiums, you are insured. It also has a cash value that you can take out loans against if you need to. The cash value is similar to your car; if you ever decided to sell your car, you could either keep the car or sell the car for its cash value . There are many reasons to get a whole life policy; you could leave a legacy, yes, it will cost more than term but it's guaranteed because the term of the policy is your whole life. You might also use whole life insurance for your final arrangements, so you know that you have funds that are dedicated for your final expenses.
Some people have several health problems that do not allow them to qualify for a traditional life insurance policy, so they have to get a whole life policy called a guaranteed issue. This whole life policy has no health questions, so it is suitable for a person that may have certain illnesses. So the question of whether term life is suitable for every case has been answered. With whole life you can get paid-up policies. Imagine you have Alzheimer that runs in your family, and there's a chance you could forget to pay your policy. Having a paid-up policy would be a great option. With all that being said, it's just as important to have a trustworthy beneficiary that will be responsible for handling your arrangements.
Term Life Insurance
When you represent several life insurance companies you become more aware of the benefits that different products have. So if you have a mortgage, or trying to protect your income, term insurance with a return of premium would be your best option. You can select to have up to one hundred percent of your premiums returned if you live past your term. If you died during your term, your beneficiary would receive your death benefit. If you out-lived your term you also have the option of taking your premium and paying up the rest that you may owe on your home.
Some of our clients choose to place their return of premium into a annuity. A more affordable route would be term without the return of premium; this still protects your love ones from loss of income, but without the benefit of receiving your premiums back.
At KFG Life insurance Specialist, we don't believe that one life insurance policy, whole life or term life, is better than another. We believe that after learning about your specific goals and eligibility, one life insurance maybe more suitable for you and your family than the other.
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