Who Should Buy Whole Life Insurance
Whole life insurance is a type of policy that can provide insurance for a lifetime. It offers the policy holder fixed premiums for the entire time that the policy is active. Among the other features that attract some are the cash value attribute and the value growth attribute. Both of these present the opportunity for the policy holder to increase the benefit by paying in more premiums. If these features interest you, then a whole life policy may be a good option. Below are more details about who may benefit most from these policies.
You
The simplest way to get the most out of a whole life policy is to start young. This is based on two aspects that are common to most of these policies. The first aspect is the fixed premium. In general, the younger the individual is the lower the expected life insurance premium. There is likely to be a limit to this savings though. A low premium can usually be expected around the twenties or the thirties. There may be some exceptions to this. By beginning a policy around that time the premium that is secured could be paid even when the insured individual is eighty.
Similarly, because these policies have cash value and value growth features beginning early provides the most time for the money to grow. This is based on a policy having some minimum value payout. The policy will contain the details regard growth rate and other considerations.
Investment
There are mathematical considerations that may make a whole life policy less effective at building wealth though. Individuals that are able to invest their money and earn a high yield consistently over the course of their lives may not want a whole life insurance policy. Simply put, the insurance and cash value features coupled in a whole life policy result in a more expensive policy. Some of the money paid goes to fees and other costs. As a result, the amount that is placed into cash value and the growth provided may not measure up to the returns that are achieved by some that invest the same amount. Individuals that do not, or cannot, invest for themselves may appreciate the two-in-one nature of whole life.
There are some simple calculations that can be made to determine which the best option is. Verify the minimum payout on the whole life policy in question. Then compare that number to the returns estimated by investing the amount that you would pay into whole life minus the cost of the life insurance you choose in place of whole life.
Moreover
It is nearly invariably the individuals that plan to maintain insurance throughout their lives that stand to benefit most from whole life. In addition, the individuals that are planning a consistent life will be most likely to get the most out of whole life. It is a lifelong policy with definite benefits and added bonuses in many cases. If these are not the features that interest you, then whole life insurance may not be the best choice. For those that are interested in the cash value and the value growth features but prefer more variability, universal life may be more appealing.
For more information from Steven on how to buy life insurance and annuities, visit our Annuities site. Or if your looking for life insurance quotes you can visit our insurance site! Feel free to check out our Insurance blog too!
You
The simplest way to get the most out of a whole life policy is to start young. This is based on two aspects that are common to most of these policies. The first aspect is the fixed premium. In general, the younger the individual is the lower the expected life insurance premium. There is likely to be a limit to this savings though. A low premium can usually be expected around the twenties or the thirties. There may be some exceptions to this. By beginning a policy around that time the premium that is secured could be paid even when the insured individual is eighty.
Similarly, because these policies have cash value and value growth features beginning early provides the most time for the money to grow. This is based on a policy having some minimum value payout. The policy will contain the details regard growth rate and other considerations.
Investment
There are mathematical considerations that may make a whole life policy less effective at building wealth though. Individuals that are able to invest their money and earn a high yield consistently over the course of their lives may not want a whole life insurance policy. Simply put, the insurance and cash value features coupled in a whole life policy result in a more expensive policy. Some of the money paid goes to fees and other costs. As a result, the amount that is placed into cash value and the growth provided may not measure up to the returns that are achieved by some that invest the same amount. Individuals that do not, or cannot, invest for themselves may appreciate the two-in-one nature of whole life.
There are some simple calculations that can be made to determine which the best option is. Verify the minimum payout on the whole life policy in question. Then compare that number to the returns estimated by investing the amount that you would pay into whole life minus the cost of the life insurance you choose in place of whole life.
Moreover
It is nearly invariably the individuals that plan to maintain insurance throughout their lives that stand to benefit most from whole life. In addition, the individuals that are planning a consistent life will be most likely to get the most out of whole life. It is a lifelong policy with definite benefits and added bonuses in many cases. If these are not the features that interest you, then whole life insurance may not be the best choice. For those that are interested in the cash value and the value growth features but prefer more variability, universal life may be more appealing.
For more information from Steven on how to buy life insurance and annuities, visit our Annuities site. Or if your looking for life insurance quotes you can visit our insurance site! Feel free to check out our Insurance blog too!