Everyone Wants Affordable Whole Life Insurance Quotes
You deserve affordable whole life insurance quotes. However, most people never get them because they let the process overwhelm them with information. That is why we are here to help you!
We will walk you through what you need to know to start shopping for low cost whole life insurance now!
#This introduction follows an outline that includes a definition of what affordable means in this context and how much money one could save with our low-cost whole life insurance; a list of some of the benefits of this type of policy; then where readers can find affordable quotes on Whole Life Insurance by clicking on the link at the bottom.#
Many thanks for reading, and please feel free contact us at anytime.
- Simon and the Whole Life Insurance Team
#This article is to be read as a culmination of a series of articles written throughout 2014. All of the articles in this series can be read in chronological order here: #
The Importance of Affordable Whole Life Insurance Quotes As you start to shop for a personal insurance policy, you will quickly realize that your desired coverage level can determine what type of plan you want - term life insurance, whole life insurance, or universal life. The most popular form of personal insurance for many households is term life insurance. You have probably been quoted every type of quote on term plans - from $50,000-to-$250,000 coverage to $1 million coverage. We are going to assume that you believe $1 million is a small number for the coverage you desire. If $1 million was not enough for you, then we are going to assume that either your family is very large or you have accumulated a great deal of wealth and need more coverage than $1 million. In either case, we will assume that nothing less than $5,000,000 will be sufficient for your needs. While there are many benefits to policy types other than term insurance (whole life insurance and universal life), the main benefit of whole life over term is the savings. Term is simply cheaper than whole life because it does not have cash value. Most people that end up buying whole life insurance like the idea that they are getting an investment account with their purchase. Yet, after reading through this article, you are going to learn how folks can save money by paying more for coverage on a whole life policy than on a cheaper term policy. Then we will show you how to get affordable quotes!
#Defining Affordable Whole Life Insurance Quotes #The term "whole life" tends to have a negative connotation for many people. While some of the reasons are valid, it is important to understand what whole life insurance is before deciding if it is right for your needs. The first thing to understand is that the term "whole life" does not refer to how much coverage you are getting. For example, a $1 million policy would technically be a whole life policy - because it offers the clients life insurance benefits as long as they live. (By contrast, an insurance company may offer a $1 million whole life policy for only $500-$750 per month.) The term "whole life" refers to how your money will be used after you die. If the money is left in your estate, it will either go to your beneficiary or for your own funeral expenses. If the money will not be used after you die and goes into a trust fund, then it is known as "term insurance. "
Whole life insurance comes with two options, known as "Return of Premium" and cash value. Most financial planners will recommend that you get the whole life policy that allows your premium payments to be returned to you upon your death (or earlier if you choose). This will save you a significant amount of money over your lifetime. However, there is a second benefit to whole life insurance that is just as important - cash value. The cash accumulation part of whole life can also be referred to as an investment account, or universal life. This money could either grow until it was withdrawn or be used for any other purpose (like paying for your children's college tuition). Thus, you could have the best of both worlds when you go with whole life insurance.
However, there are some things that you should know before deciding to purchase this type of insurance policy. First, let's go into what affordable means in this context and how much money one could save with our low-cost whole life insurance .
#How Much Money can You Save? #Now that we understand the different parts of whole life insurance, it is time to put an example together. Let's assume that we are shopping for a family of three - a husband (age 40), wife (age 35), and teenage daughter (16). The average cost for a term life insurance policy from a broker is $1,000 per year. So we are looking to spend $3,000 per year on insurance. This means we want the coverage to be at least $3 million for the whole family of three. Let's assume that you have about an 8% return on investment (ROI) over the course of your life expectancy (referred to as the "term life expectancy" in this context). If you were to buy a policy that offered 10% ROI during your entire working life, then it would have a total payout of about $2.5 million if you pass away 40 years old with zero survivor benefits. This means that you would need a $500,000 policy to be completely covered for the rest of your life. If this same family purchased a $500,000 whole life policy at an 8% return, then the total payout over the next 40 years with zero survivor benefits would be about $2 million. (Of course, there are many factors that come into play when calculating these odds - but a rough estimate will do the trick here.) Thus, you could purchase a $500,000 whole life policy for as little as $1,750 per year compared to $3,000 per year with term insurance.
#Why You Should Use This Whole Life Insurance Calculator? #In the example above, we used average term life insurance policies in the $3,000 to $5,000 per year range. When a family goes this route today, they are getting average term life policies for around $1,500 per year. These policies can be cancelled if they are not used within the first year. This means that people have wasted thousands of dollars on premium payments for this type of policy - and if their family members die in that first year of coverage, then the premiums were wasted completely (the amounts were never refunded back to the client). This can leave a large hole in your budget. But what if you were to purchase a whole life policy that would cover your family for the same amount of money per year? You could save hundreds of thousands of dollars over the course of your working lifetime.
The way to do this is by using an affordable whole life insurance calculator like this one. This calculator will show you how much coverage you need and how much money it will cost you with various return percentages - depending upon your age and whether or not the proceeds go into a trust fund or are returned to the client (renewable).
Conclusion #Whole life insurance is an extremely complex subject that has many aspects to explain and question. The upshot? Whole life insurance offers a lot of benefits - even with the higher premium payments. But if you are shopping for this type of policy, then you need to be thorough about your selection of brokers and understand what whole life means before going forward. By using our affordable whole life calculator , you will be able to price out your coverage accurately - saving you money in the long run!
Disclaimer:
This information should not be construed as financial advice or suggested in any way for your specific situation. Please check with your legal, financial, or tax advisor before making any purchase decisions.