Parents who want to buy whole life insurance should know about the key features, whether buying whole life protection for themselves or for their children. But first, ask yourself these questions:
What are your life insurance goals? Are you concerned about protection for your life only? Would you also like to build cash value in your policy when buying whole life insurance?
• How long do you plan on keeping your whole life insurance policy? Is buying whole life insurance a component of your short- or long-term objectives?
• Do you have or plan to have children? When you buy whole life insurance, your children can benefit in two primary ways:
– First, should you meet an untimely death, they will receive life insurance proceeds to help weather the financial consequences.
– Second, you can buy whole life insurance for each child, the cost of which can be very reasonable because premiums are based on their age.
• Do you own or plan to own a home? Buying real estate, even during down economies, is an expensive but rewarding choice. Whole life insurance can help your heirs keep your – and their – home.
Consider Buying Whole Life Insurance for Your Children
You might consider buying whole life insurance for your children as well as for yourself. All life insurance coverage becomes more expensive as the insured party gets older, so when you buy whole life insurance for your children, the cost can be very reasonable.
Whole life insurance, also called “cash value” and “permanent” life insurance coverage, is designed to last a lifetime, unlike most term life insurance policies, which cease at the end of the pre-selected term.
The Whole Life Plan1 from Gerber Life offers you coverage amounts of $25,000, $50,000, $75,000, $100,000, $125,000 and $150,000, and also builds guaranteed cash value, as long as premiums are paid. The cash value of the whole life policy includes earnings determined by your life insurance company, which are added on a regular basis, as long as premiums are paid.
Evaluate the Strength of Your Life Insurance Provider
Because of the long-term nature of whole life insurance, it’s important to evaluate the financial strength of your insurance company. Is the company able to outlive you in order for them to pay your policy’s proceeds to your beneficiaries? Gerber Life has provided quality, affordable life insurance to families since 1967 and has more than $40 billion of life insurance in force. It’s also conservatively managed, to ensure long-term growth and financial stability.
According to ConsumerReports.org, you can also check out the credibility of a life insurance provider yourself, using a respected life insurance company rating source. Reviews of whole life insurance policies can help you identify the benefits of various insurance policies.
Determine the Coverage Your Family Needs
When buying whole life insurance, decide how much coverage you need. There are many online calculators that can help you determine this. You’ll find a useful example offered by the American Institute of CPAs. Answers to commonly asked questions about whole life insurance also can be found on our website, to help you make the right decision for you and your family.
1Policy Form Series WLP-07