Term life and whole life insurance policy are the two main types of life insurance that you will have to choose from. While many people initially favor term life insurance policies due to the fact that they often come with lower monthly premiums, the fact is that whole life insurance policies actually offer the better deal in most cases. Read on to learn more about three of the reasons you should pass over the tempting premiums of term life policies in favor of buying a whole life policy instead.
Reason #1: A Whole Life Policy Will Provide You With Guaranteed Rates
While a term life insurance policy may initially seem to be the cheaper option, the rates that are associated with these policies will typically increase the older that you get. This means that by the time your insurance policy is more likely to result in a death benefit being paid, you will actually be paying far more for a term life insurance policy. When choosing to purchase whole life insurance, you will receive a rate that is guaranteed for as long as you keep the policy. This means that you will never need to worry about having to deal with high insurance costs each month even if you develop a serious medical condition or simply live to old age.
Reason #2: Never Worry About Being Disqualified For Coverage
With a term life insurance policy you will need to reapply for coverage at the end of each term. Chronic or fatal medical conditions can result in the insurance company denying your application for coverage because of the high risk that comes with them agreeing to insure you. This can be a serious problem for people who want to ensure that they leave enough money behind to cover all of their final expenses and to ensure their family is taken care of in their absence. With a whole life insurance policy, there is no need to ever worry about being disqualified from coverage since your policy will remain in effect for the rest of your life regardless of any health problems that you may have.
Reason #3: Enjoy Benefits While You Are Still Alive
Term life insurance policies only pay out a death benefit if you pass away during the time period covered under the policy. Whole life insurance policies also offer a death benefit, however, whole life policies also offer a variety of benefits that you can actually enjoy while you are still alive. These living benefits include dividends that can be used to help cover the cost of your monthly premiums and cash value that you can borrow against in an emergency.
For more information, you can reach out to an agency such as Banks Life & Health Agency.