Whole Life insurance is one of the most popular kinds of life insurance. Unlike Term Life insurance, which covers only a pre-selected number of years, Whole Life insurance provides coverage for your entire life, regardless of how long you live.
Benefits of Whole Life Insurance
With Whole Life insurance, you will pay the same premium amount every month for the duration of the insurance policy, regardless of your age or physical condition. Your beneficiary will receive a guaranteed amount of benefits when you die, regardless of how long you live. Finally, your Whole Life insurance policy will allow you to borrow against the policy’s cash value, which continues to increase as you pay your monthly premiums. Keep in mind, however, that borrowing against your policy may decrease the payout your beneficiary receives after you die.
Considerations when Buying a Policy
To select a whole life insurance policy, calculate the amount of money your beneficiary would need if you were to die at any time in the future. Also, be sure to consider the amount of money you can afford for life insurance premiums each month. The higher the face value of the insurance policy, the more expensive your monthly premium will be. Your age and health status will affect the cost of your premium, so it is best to purchase whole life insurance when you are young and in good health. If you have already been diagnosed with health problems, purchase a policy as soon as possible to avoid paying a higher premium.
Evaluating Your Options
When buying whole life insurance, be sure that the face value of the policy you choose is sufficient to cover your family’s needs in the event of your death. The Whole Life Insurance Plan1 from Gerber Life, for example, allows you to choose a coverage amount ranging from $25,000 to $150,000.
Generally, Whole Life insurance is more expensive than Term Life insurance, which sometimes results in buyers being tempted to underinsure themselves. Doing so, however, can be detrimental to your family’s future. If you can’t afford the policy size you need for whole life insurance, consider purchasing a term life insurance policy instead.
Gerber Life also offers a Term Life Insurance Plan2 with budget-friendly premiums that never increase throughout the duration of your policy. The policy permits individuals to choose a 10-, 15-, 20-, or 30-year term, without worrying that their insurance rate will fluctuate with the ups and downs of the economy.
1Policy Form Series WLP-07
2Policy Form Series SLT-05