Whole Life Insurance Quotes

Whole Life

__________

Explained

Whole life insurance quotes reflect a broad range of permanent life insurance policies. Permanent life insurance lasts for the entirety of a policy-holder’s life, and then pays out a lump sum of tax-free cash benefits to loved ones upon your death. This is different from term life insurance policies that only cover you for a specific period of time before they expire. 

Another main difference is that whole life insurance quotes reflect policies which include a cash value savings component. This means that the value of your policy increases every month as you continue paying your premiums. It can be thought of as a savings account that pays out benefits to your loved ones if you die prematurely.

The cash value feature of whole life insurance is similar to that of other permanent policies such as universal and variable life insurance.

 

How It Works: Whole Life

A set amount of money is paid out to everyone you name as a beneficiary when you die. This is also known as a “death benefit.”

Monthly or annual premiums must be paid by the policyholder to keep the policy active. Every month, a portion of your paid premium will be put into the cash value savings component. The insurance death benefit slowly decreases while the cash value grows.

The insurer predetermines a small amount of interest that you will receive on the cash value. And once the cash value holds 100% of the money in your policy, benefits will be paid out.

Keep in mind that whole life insurance is much more complicated and a lot more expensive than term life insurance policies. Therefore, it’s usually not the best choice for insurance shoppers.

Key Features

_______________

  • The policy lasts your entire life
  • A death benefit is guaranteed
  • Cash value savings are guaranteed
  • Interest is earned at a predetermined rate
  • Premiums always remain level

Average Costs

Because whole life insurance guarantees a pay out to policyholders, whole life insurance quotes tend
to be the absolute highest. Generally, you will be paying at least three times the cost of term life insurance.

_______________

$100,000

in coverage

$1031

Annually

$89

Monthly

$250,000

in coverage

$2440

Annually

$212

Monthly

$500,000

in coverage

$4800

Annually

$420

Monthly

$100,000,000

in coverage

$9510

Annually

$827

Monthly

_______________

Is it right for you?

__________

Pros & Cons of Whole Life

PROS - Why Buy Whole Life Insurance
• Build savings that earn interest on premiums over the course of your life

• Give your family the ability to cover debts in the event that you die early

• Tax-free inheritance guaranteed to beneficiaries
• Cover end-of-life costs
CONS - Why Not to Buy Whole Life
• Very few investment options available for cash value eventually comprising all death benefits

• Lower rate of return compared to other forms of investment

• More expensive compared to term life insurance for same death benefit coverage

Whole Life Riders

Whole life insurance quotes may or  may not include riders, depending on the insurance company and products offered.
Riders are additional benefits added to the policy which are often optional and come at an extra cost.

_______________

Long Term Care

Long Term Care Rider

In the event that during old age a policyholder requires long-term medical care that the policy refuses to pay for, this rider will cover the costs. Long-term care payments are made monthly.

Disability Waiver of
Premium

Disability Waiver of Premium

If you as the policyholder become disabled and lose your source of income, disability waiver of premium lets you skip payment of your premiums until your recovery. No worries about the policy being cancelled.

Accelerated Death
Benefit Rider

Accelerated Death Benefit Rider

This rider gives you early access to death benefit cash in the event that you become terminally ill. The benefit can be used to pay for medical care expenses. Being diagnosed with 12 months to live is generally the terminal prognosis. But some states hold theirs at 24 months.

Family Income Benefit

Family Income Benefit

If the policyholder dies prematurely, family income benefits provide a steady monthly source of income to all named family beneficiaries to cover costs in addition to receiving death benefits.

_______________