Whole Life Insurance Basics
Investing in a life insurance policy is the best way to ensure that your loved ones will be financially stable after you are gone. When looking for the right policy to invest in, it is important to make sure that you choose the right policy for your specific needs. A whole life insurance policy is a type of permanent life insurance policy and has a guaranteed payout for your beneficiaries.
As long as you keep up with the premiums of your whole life insurance policy, your beneficiaries will receive the payout, called a death benefit, when you pass away, no matter if it is in a month of 100 years. Whole life insurance differs from term life insurance in that term life insurance will only guarantee a payout for a set number of years. If you pass away after your term life insurance has expired, your beneficiaries will not receive any death benefit. Whole life insurance policies also come with higher premiums than term life policies.
Most life insurance companies will require a medical exam before you invest in a whole life policy. The medical exam will look for any medical issues that you may have. Any medical issues that you have will not necessarily hurt your chances of getting approved for a policy, but it may lead to higher premiums. The bigger of a risk that you are considered to your insurance company, the higher your premiums will be.
As an added bonus, whole life insurance policies have the ability to accumulate a cash value that you can borrow from while you are still living.
For all your life insurance coverage needs, contact the insurance professionals at Idaho Insurance / Affordable Insurance in Caldwell, Idaho. We will work with you to ensure that you have the right amount of protection, all at the right price.