Who needs life insurance? Anyone who has a spouse or family needs to buy life insurance. This provides money for them in case of your death.
Whole Life Insurance is just one type of life insurance for you to consider. Is this the right policy type for you? What are the advantages of having this verses other types of life insurance? What is great about having Whole Life Insurance is that this type of policy goes into effect from the day you start paying premiums and it continues until the day you die, unless you make changes or let the policy lapse. Once you have this type of life insurance there is no need for further medical exams in the future. This is guaranteed coverage for life!
The money you pay as premiums is invested in vehicles like bonds, money markets or the stock market. As you pay your premiums, your policy grows in cash value. As cash value increases you will be able to borrow from this money should it become necessary. But this should only be done in case of an emergency. You pay no taxes on your earnings unless you decide to withdraw money from the policy. At time of death, there are no taxes to be paid by the beneficiary.
Prices will differ among companies because they rate customers on things like major health issues, age, tobacco usage, alcohol usage, etc to determine risk factors. Some may not place a great emphasis on one risk factor and others may rate it high on the list. So shop around and compare prices. The premiums for Whole Life Insurance may seem higher than other types of life insurance, but this type of policy is usually paid off long before your death. This type of insurance policy keeps the same premiums and face value to age 100. After you reach 100 it continues up to age 120 without any additional premium payments.
If you have others who depend on your financial support, life insurance is a great way to make sure they are taken care of in the event of your death. Of course this is something that we all don’t like to think about but it is a fact of life.