Life Insurance Policies Should Be Tailored
Many consumers are asking experts whether or not they should be shopping for whole life insurance or term life insurance quotes. The truth is, life insurance policies need to be specifically tailored for the individual. There are so many unique financial situations and there's no "one size fits all" policy. There are many factors to consider and you should fully understand how each type of policy works before making your final decision.
When shopping for your life insurance you will need to consider a few important factors. First, determine your purpose in carrying life insurance. Decide if you want insurance that is permanent or short-term. Then sit down with a financial advisor to help you figure out how much coverage you will actually need and take into consideration your health status as you factor in a premium for your monthly budget.
Once you have all of this information organized, take a close look at the product options for life insurance. Term life insurance has a set premium for a certain number of years. If you pass away, your named beneficiary will receive a payout. If you outlast the term you will never see this money. This form of life insurance is typically less expensive, especially for young and healthy adults.
Whole life insurance are designed to have a set premium for as long as you live. In general, this type of policy has a cash value which accumulates over time and can be borrowed against at certain times. Whole life insurance is also called permanent life insurance since the premium never goes away. The premiums typically are higher and some view this as a savings account of sorts. Whole life insurance can address temporary needs, but the nice thing is that it can also be used to cover big life expenses such as college, weddings, and long-term care.
Sifting through your information, your needs and your options can be somewhat overwhelming, but it will be well worth your time in the end. The choice you ultimately make depends on your individual situation and your personal needs. Hiring a CPA or lawyer to work with you can be useful and help you feel confident that everything is in order for you and your loved ones.