In a world thats all about living your best life,life insurancejust doesnt fit.
One option to consider is whole life insurance.
What Is Whole Life Insurance, and How Does Cash Value Work?
So what is whole life insurance?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Term vs.
When you choose term life insurance, you’re able to get more coverage for lower premiums.
Because youll likely outlive your term, and the insurance company wont have to pay out a death benefit.
It also has no cash value.
Your premiums for personal whole life insurance are considered a personal expense, so they arent tax-deductible.
5 Types of Whole Life Insurance Policies
There are five main types of whole life insurance.
Single premium whole life insurance:One large lump payment you make upfront takes care of this policy.
Survivorship life insurance:These policies allow you to insure two people and are popular among spouses.
It pays out only after both policyholders have died.
Its less expensive than paying for two separate whole life insurance policies.
What Happens When a Whole Life Insurance Policy Lapses or Is Surrendered?
A whole life insurance policy lapses when the policyholder stops making monthly premium payments on time.
Death benefits will no longer be paid out for these surrendered policies.
Read the fine print to check that you understand the rules of your whole life insurance policy lapse clause.
Typically, reinstatements cost more than one months premium payment.
Term Insurance
We get it.
This is a difficult task no matter what.
Life insurance company terms and conditions and the products and services they offer are complicated and difficult to digest.
But heres a quick summary of when to consider whole life insurance vs. term insurance.
Kurt Schultheis is a Florida-based writer.
It sounds appealing right?
Check it out here!
