Everyone needs life insurance to protect financial dependents, pay financial obligations or just to cover final expenses. Consumers want to find the best insurance at the most affordable rates, but this can take time from busy schedules. There is a quick and easy way to compare the rates of the top ranked companies with free whole life insurance quotes online.
Whole Life Insurance Rates
A comparison of different types will show that whole life insurance has the highest initial rates, but the rates are fixed and never increase like they can with other types of insurance. Payment of the death benefit is guaranteed whether the insured person dies at age 30 or age 90 because whole life is permanent insurance, but premiums aren’t all you need to know about whole life.
Term vs. Whole
When comparing term and whole life insurance, consumers will find that term life has lower rates. Term life is temporary coverage that only pays the death benefit if the insured person dies within the term of the policy. If the insured person survives the policy term, no benefit is paid, the policy expires and the insurance company retains the premiums.
What Is Cash Value?
Whole life insurance policies divert part of the premiums paid by policyholders into a savings feature that pays a guaranteed interest rate. This is called the cash value of the policy, and the policyholder can redeem the money in the policy, which cancels the insurance, or use the cash value as security for low interest loans from the insurer. It is important to remember that part of the premiums are returned to the policyholder as cash value (and can be included in your net worth calculation). Term life has no cash value.
Affordable Whole Life Insurance
Traditional whole policies have higher rates than other types of coverage, but insurance companies have developed new types of policies with different payment options that are tailored to meet the needs and financial goals of different people. Consumers can compare these options to find affordable whole life policies for their individual lifestyles.
Modified Whole Life Insurance
Unlike traditional whole life policies, modified whole life insurance has premiums that start low and increase at specified intervals. Young families just starting out may have tight budgets, but their income will increase over the years. Modified whole life policies are designed to be affordable for young families whose income will grow over time. If whole life insurance quotes seem too high for the budget, consumers can compare the initial premiums of modified whole life for more affordable coverage.
Endowment Life Insurance
Although endowment policies provide protection, they are limited payment policies that mature and pay a lump sum (cash value) after an interval of 10 to 20 years. Perfect as a gift for young children, endowment policies can help children pay for college tuition, a car or other expenses when they become adults. Research can show parents and grandparents that an endowment policy can be an affordable gift for an infant or young child that will help the child meet future goals.
Limited Payment Whole Life Insurance for Retirement
Limited payment whole life insurance policies have higher rates than traditional policies because the payments are condensed into a specific time period, usually 15 or 20 years. The advantage of limited payment whole life is that once the policy is paid in full it becomes permanent and the policyholder can access the cash value through low interest loans with no repayment schedule. Free quotes can help consumers planning for retirement decide if limited payment life is a good tool for their retirement planning.
Single Payment Whole Life in Estate Planning
The returns on the cash value of permanent life insurance are tax deferred until they are withdrawn from the policy and the death benefit is tax exempt in most cases. Affluent individuals can use single payment whole life as a tax shelter in estate planning. The policy premiums are paid in full when purchased. Whole life comparisons can help consumers decide which companies offer the best investment potential for single payment whole insurance.
Free and Instant Quotes
Many websites offer free, instant whole life insurance quotes online from multiple insurance companies. To get quotes, consumers simply complete a short questionnaire with basic information like age, gender, occupation and medical history. Once the information is submitted, it only takes a few minutes to get free feedback.