So you are almost ready to get whole life insurance to protect your family from any kind of financial burden when you die and you just want to weigh out the pros and cons? You are in the perfect place then when it comes to whole life insurance pros and cons.
We specialize in whole life insurance also known as burial insurance primarily for seniors. This article will cover the pros and cons of this type of life insurance and in addition, we will show you how to overcome the cons of whole life insurance.
Let’s jump right into it.
Quick Tip: To see pricing on whole life insurance fill out the form to your right.
What Is Whole Life Insurance?
This type of insurance is permanent life insurance that never expires and will cover your family for your entire life. As long as you pay your premiums your coverage is permanent. This is much different from term life insurance because term terminates meaning the coverage may be cheaper in a lot of cases but it is not permanent and will expire.
Whole life insurance will be with you your entire life as long as you are making regular premium payments.
The insurance coverage typically provides:
- Smaller Death Benefits Typically between $1,000 – $40,000
- Can cover Ages 45 – 85
- Simplified Underwriting to get Approved Typically the same day
It is lifelong coverage that can be used for anything from burial, cremation, paying off debts, or leaving a legacy for your family.
The main goal is to protect your family from the financial burden that will be left behind when you die. If your family has to come out pocket $10,000 for a funeral this will hurt them financially in addition to their grieving.
It also builds cash value which grows tax-deferred as a separate saving you can borrow from which if you ever need to. In addition to this, the death benefit to your beneficiary is tax-free.
- It Never Expires
- Tax Benefits
- Cash Value
- Higher Premiums
- Smaller Death Benefit
How to Overcome the Cons?
The higher premiums are a given considering this is long-term life insurance that will never expire on you. Now the life insurance premiums are level and will never increase on you as long as you are with the right life insurance company which is what our agents will help you get.
So as long as premiums are paid the price of your policy will never increase even as you get older and the coverage will never decrease it will stay the same your entire life.
Now overcoming the smaller face amounts is very simple and this is what our agents specialize in. Let’s say you want $70,000 in coverage but the whole life policy only goes to $35,000 maximum. The solution is to simply stack your policies on top of each other.
You can have as many whole life insurance policies as you want so we can help you take advantage of this.
What you do is get a $35,000 American Amicable policy and after your purchase, you get another $35,000 with Prosperity Life. This brings you to a grand total of $70,000 in benefits to leave behind for your family.
Fill out the form to your right and request a policy stack with the agent you speak to.
Other Permanent Insurance
Variable Life Insurance
This type of coverage functions more like a retirement investment than just life insurance protection. You choose how the cash value gets invested. This is done through what is called Mutual Funds. At that point, the cash value goes up and down just like a typical investment.
Universal Life Insurance
Coverage like this is flexible you can lower or increase your death benefit at any time which can raise or lower your premiums. If you need more coverage as time goes on you can increase it.
What other People Ask
What is the main disadvantage of whole life insurance?
There is no real disadvantage aside from a higher premium or lower investment potential, however, these policies are designed to be permanent end-of-life protection.
Why do people choose whole life insurance?
People choose whole life insurance because it is permanent coverage with premiums that never increase and gains cash value that they can borrow against if they ever need to. The beneficiary is guaranteed a tax-free death benefit.
ParamountQuote is your Broker
We are a national independent broker that specializes in whole life insurance. Our agents are highly trained to get customers even with moderate health conditions approved for whole life insurance.
Our agents can help you stack policies for higher amounts of benefits and pinpoint exactly which carrier will give you the best rate and coverage based on your health profile. We work with all of the top major whole life insurance companies nationwide which is what allows us to help 90% of our clients get day one coverage and day one approval.
The agent that helps you will also be your personal service agent on call whenever you need them for any questions you may have related to your policy. Our agents pride themselves on always being there for our clients.
Fill out the form to your right to get started.