Life insurance is something that most people don’t like to think about. This means that death has occurred, and they are no longer living their life with their families and friends. It is something that all of us need to face because no one wants to leave their family with the expense of a funeral and other bills including even possibly their home. It is something that all of us need to learn the facts about. There are different types of life insurance that are available and people that are purchasing them need to know the differences.
Whole Life Insurance is an insurance that will remain in effect to the end of the insured person’s life. This is as long as the payments have been made and the agreement on the contract has been followed. This policy seems to be very controversial and has pros and cons to it more so than most others. It seems to be the most permanent and does not have a term limit or an age that it cancels. One of the biggest cons to this type of insurance is the premiums cost quite a bit more than some of the others. On a whole life policy, there are also fees that are applied because it acts similar to a savings and part of it is invested into stocks where it can grow depending upon the investments that have been made. Even though the policyholder has no say on what it is invested in some people feel that the higher premiums are worth the risk, while others do not like the fact that they have no say on how their investments are made. If whole life is an option for you, make sure that you understand the investment part of it and all of the fees that are charged and are added on to your premiums.
Whole life policies also have a cash value to them based upon the amount of insurance that you have selected. They also in time may have some various types of tax credits and advantages that could save you money, depending upon how you use your investment part of the policy. Some look at it as a way to force savings toward your retirement with money that you can draw out and borrow depending upon the returns of your investments.
When making your decision, make sure to ask about anything that you are unsure about. It is very important to understand how it all works including the fees and investments and the entire package. Before you commit, know what your premiums are going to cost so that there is no big surprise when you get your bill for your first premium.
