In these days of great uncertainties, nothing can be better than preparing yourself for anything that could happen and one of the best ways to do that is through whole life insurance. Life insurance is an important part of one’s financial planning as it creates provision for you and your family and loved ones in the future or following your death. Insurance can ensure your financial security when you retire or to the ones important to you when you are gone. A carefully planned and executed insurance policy can help you prepare for life’s greatest uncertainties and can give you peace of mind in knowing that the future of the one’s you hold most dear is secured.
There are actually two kinds of life insurance – the term life insurance and the whole life insurance. These two have been in completion. While both of these life insurance types accomplish their set goals effectively for every client, one or the other may not reach your personal goals or attract your personal preference. Nevertheless, whole life insurance has wider features and is more complex than the term insurance which trades your investment for pure protection. However, like all policies made, it has its fair share of pros and disadvantages.
Whole Life Insurance Pros
There are three dominant features of the whole life insurance that make it beneficial for anyone preparing for the future.
- Lifetime Coverage
The first of the three key features is the lifetime coverage procurer du viagra. When you compare the insurance quotes and policies between the term and the whole life insurance, you will find the latter option is appropriately named. Unlike the term life insurance coverage, homeowners, car owners, business insurance and lifetime protection is permanent as long as you continue to pay what the policy requires of you. Whatever negative changes may happen in your health condition, your whole life insurance policy will still remain as a life-long protection.
- Forced Savings
One great feature of whole life insurance is that it also acts as a forced savings account. A part of the monthly, quarterly, or annual payments is allotted to an investment account. If ever you find the life insurance quotes you desire at a young age, you will surely be able to enjoy the continual build-up of cash in your account. Your earnings will continue to grow without an immediate tax liability. This can be a major benefit you can enjoy both in short and long-term.
- Great Tool for Estate Planning
A lot of experts in estate planning recommend their clients to purchase whole life insurance merchandise for one important reason and that is death benefits are absolutely free of taxation. This is great for people who are wishing to remove the often large tax consequences that apply to their estate. For this reason, whole life insurance can be extremely important and valuable.
Whole Life Insurance Cons
Great as it is, whole life insurance also has its own fair share of downsides.
- Insurance company has the power to choose where to invest your premium
With the whole life insurance coverage, you don’t have the ability to choose your preference on investments. In comparing life insurance terms and rates, you have the power to choose the company and merchandise you desire. However, after you have made your choice, the insurance company will do the rest of the future selections on investments for you. To insure that your premium is well invested, choose your insurance coverage provider carefully. Research their performance history and ask the people around you who have their own insurance coverage for you to find the best option. Choosing the best insurance company will maximize your earnings.
- Little Flexibility to Modify the Terms of the Policy
The whole life insurance permits only little flexibility for your insurance policy. As the circumstances in life may change, whether in family, health, work or business, there may be some options in your whole life insurance policy that you might want to modify its conditions and terms. To maximize your insurance policy in a way that it would fit all the possible circumstances that would come, plan your whole life insurance carefully. You can consult some trusted experts and friends.
Surely, you can add to your insurance coverage by checking life insurance rates and all the other coverage in the future. However, possible changes, especially on your health condition may increase the cost of a new policy.
- High Cost
Without a doubt, the biggest con of the whole life insurance is its high cost. The actual cost of a whole life insurance may vary depending on some factors. These factors include your age, the amount of insurance, whether you smoke or not, length of term policy, and your health condition. However, the cost of the whole life insurance will possibly exceed any term life insurance policy with the same death benefits by thousands of dollars annually, but expect the policy to be 10 times higher the cost of a comparable term insurance policy.