I recently decided to get a life insurance policy and I’ve been asking some agents which would be suitable for me. They suggested that I get Whole Life Insurance Policy quote, what exactly is it?
Katrina
Dallas, TX
Good Question:
It is good that you understand the value of having a life insurance policy. And the fact that you’ve been asking around shows that you are a careful buyer.
Whole Life Insurance Policy is a type of policy that covers you for as long as you live. It is permanent as long as you keep paying the premium. Since it is a long term insurance, the premiums that you pay are fixed.
Unlike other life insurances, you get cash values with whole life insurance policy, which you can keep in case you surrender the policy before maturity. The cash value account works like a savings account. It lets you accumulate money over time and it also lets you take out loans. If at any time anything should happen to you that would cost you your life before you finish paying off the loan, the money that your beneficiaries will receive will be less than the cash amount that you have saved. For instance, you took out a $ 350,000 policy and over the years, you often borrowed from the cash money which amounted to $100,000, now in the event of your death, your family will only receive $200,000. This is because the policy will have to pay for the money that you borrowed over the years. To be sure, you can ask and clarify with your life insurance agent on how much your beneficiaries will receive upon your death.
I’m sure that you’ll find a life insurance agent who can give you a whole life insurance policy quote and offer the best suited Whole Life Insurance Policy for you. Good luck!