Inexpensive Whole Life Insurance
We always hear about how expensive life insurance is and how it costs upwards of $100,000 or more! The cost of whole life insurance is a huge expense and something many people can't afford.
Many people argue that term life insurance which covers you for a set number of years would suffice. This isn't the case though as the premiums are much higher which means you pay more in premium payments for less coverage. You're actually paying more out-of-pocket in the long run, since term life only covered someone for a set number of years and never insured against accidents or natural disasters like whole life does.
Term policies end up costing exponentially more money when it comes to buying a lifetime policy later on down the road. For example, many insurance companies require a 20% down payment when you purchase term life insurance. This means that you would be paying like $10,000/year in premiums for only $100,000 of coverage! That same person will have to pay much more for whole life insurance if they don't put down a larger down payment.
So why not just go with term life? Well, it doesn't protect you from the exhaustive list of things that can happen to you which means you could wind up paying for years before your family has any financial help in the event of your passing. This is why whole life insurance is such a great alternative.
Whole Life Insurance provides you with simple and affordable protection that covers you for your entire lifetime and then passes on to your spouse after you pass. Whole life protects you from the all-inclusive list of things ranging from accidents, natural disasters, illnesses or even death by homicide! It doesn't matter what happens to you, if anything happens at all, your family will be taken care of for the remainder of their lives.
In addition, in order to make this type of policy affordable you can make a large down payment. Many people decide to do so in order to receive more substantial and suitable coverage, which can be done by paying only $500-1000 for a $250k whole life policy.
For example: If you pay $500 for a $250k policy it will cost less than 200 bucks a year for the rest of your life. Not a bad deal for you or your family. In addition, the policy will keep paying your beneficiaries after you pass away even if it's not cashable! This is why whole life insurance is such a great deal.
Some people may argue that if you wanted to pay less money per year that you would just make sure that your policy premium never accumulates with any interest. Well this isn't really an option as many policies require at least some level of interest to be accrued onto the policy in order to balance out the cost of insurance and make sure there are enough funds to pay the beneficiaries after the insured passes away.
Finally, you may also believe that whole life insurance is not as good of a deal because you have to pay for it your entire life. While this is true, whole life insurance does pay for itself in the long run. The policy will continue to increase in value even if it's not cashable. The policy becomes better and better as time goes on so the beneficiaries always have a nice amount of money coming their way.
At the end of the day, there are many benefits to whole life insurance and it's not really fair to dismiss this kind of coverage under any circumstances. You owe it to yourself and your family to give whole life insurance a chance!
Look at it this way: Even if you have less than perfect credit, you can still get an affordable policy with a down payment and that's much better than taking out a sub-par term policy without taking care of your financial situation. In addition, if you need more coverage after that or you simply want higher coverage for family reasons like having more than two beneficiaries, then you could upgrade up to a whole life policy with cash values.
To answer the question; why not just go with a term policy, I'd say because you're missing out on a lot. For example, the average term life premium for a single male aged 35 to 65 is about $5,891 compared to the average whole life premium of $7,356.
Another reason many people may think that term life is better is simply because it's cheaper and easier to understand. You don't have to think about things or make complicated decisions the whole time which can be really exhausting and frustrating in an already stressful situation! That's why it's so important to compare policies with like-minded individuals who have seen both situations before.
Conclusion:
In the end, you owe it to yourself to compare whole life insurance as well as other types of insurance! The cost of coverage is a huge concern and something we cannot ignore. So where does that leave us? Well, we need to make sure that we're paying for the right policy at the right price!
You need to do your research and make sure that you're comparing apples to apples. Ask yourself some questions like what kind of coverage do I want, how much would I pay per month, why is whole life insurance better than term life insurance, etc. These are good questions and should allow you to make an educated decision on what level of coverage will work for you in your situation.