Whole Life Quotes
Finding the right whole life policy takes some time. Your primary concern is probably price, and there are a number of whole life quote comparison sites online. But to get started, you should also compare whole life plans, coverage, and limitations.
Whole Life Plans
According to the New York insurance commission, there are six basic whole life plans. These include non-participating, participating, indeterminate premium, economic, limited pay, and single premium. Basically, these various plans include hybrids of term life with whole life, as well as the option of a limited term of payment (generally 20 years) that provides lifetime coverage. Single premium is a type of whole life insurance that allows you to pay for the entire policy up-front for lifetime coverage, in one lump sum.
Whole Life Coverage
Whole life policies provide a combination of coverage and cash value. The cash value grows, while the "face amount" of coverage often stays the same. For example, If you take out a whole life insurance policy with $250,000 of coverage and you continue contributing to the policy until your "cash value" is $20,000. That means your entire policy would provide 250,000 dollars to your beneficiaries along with the 20,000 in the cash value of your policy. Your cash value can also be used, while you're living, to invest in mutual funds, take out a loan, or when you need emergency cash.
Limitations of Whole Life Insurance
Whole life insurance is more costly than term life insurance. For this reason many consumers decide on term life insurance to provide coverage. However, if you're able to make the premium payments on a whole life insurance plan, you'll receive more benefits and better, more stable coverage over the life of the term. You can also use part of what you contribute into the plan (the "cash value") for expenses, loans, retirement, or investment.