Stress Affect

Building the Nation

Personal Finance

How To Optimize Your Whole Life Insurance Coverage

Protecting your loved ones for a lifetime is guaranteed to give you peace of mind. A form of life protection is through a life insurance police. This is where Whole Life Insurance comes in. It gives you the coverage of a lifetime.

Whole Life Insurance is a type of insurance policy that will last till the end of your days. It is a permanent life insurance that’s not commonly used. Most insurance shoppers go for the Term Life Insurance coverage. But do you know that the Whole Life Insurance Policy has its own advantages?

Once you understand better what Whole Insurance is, you’ll know that you can optimize its coverage to the fullest. Here are some types of Whole Life Insurance and how to fully optimized its coverage.

Types of Whole Life Insurance Policies

If you are shopping for a life insurance that pays back if you don’t die, the Whole Life Insurance is the way to go. This type let’s you enjoy your premium till the end of your life. In order to optimize everything that this insurance brings, here are some of its types. Check these out so you will know which one to get when your time comes.

·         The Ordinary Whole Life Insurance Policy

An alternative to Term Life Insurance, this type of Whole Life Insurance provides the coverage of a policyholder’s entire life. Compared to Term where the holder has a specific number of years for the insurance policy to be covered. Most often, the Ordinary Life Insurance includes saving that can be used to invest on cash value.

·         The Limited Payment Life Insurance Policy

Another type of Whole Life Insurance is the Limited Pay. This type lets you pay for the premiums for a limited number of years. This option gives you the chance to pay for the insurance in 10, 15, or 20 years. The benefit of the Limited Pay Life Insurance lasts a lifetime.

·         The Single Premium Life Insurance Policy

You pay one-time for the benefits of a guaranteed death benefit for this type of insurance. Single Premium is still part of the Whole Life Insurance. Since the life insurance policy is fully-funded, the cash investment goes up really quick for this type.

·         The Modified Premium Life Insurance Policy

If you cannot pay-off the premium at one time for a Whole Life Insurance, you might as well take advantage of the Modified Life Insurance Policy. You have the option to pay for less for a couple of years. The cash value still goes up since it has the same policies with the Whole Life Insurance.

·         The Survivorship Life Insurance Policy

Lastly, here’s a type of Whole Life Insurance that’s perfect for couples. This type is a joint insurance policy that is less expensive. Both policyholders get the same benefit. The death benefit is paid out when both policyholders die.

More Benefits from a Whole Life Insurance Policy

Whole Life Insurance Policy has add-ons that you can include in your coverage. There are several items listed. Here are some of those add-ons that you can include when you get the Whole Life Insurance:

  • Accidental death – the insurance coverage pays a premium in the event of an unexpected death of the policyholder.
  • Disability income – if you become permanently disabled, the insurance company provides a regular income.
  • Level term – a fixed amount is added to your whole life insurance at a specified period.
  • Waiver of premium –in the event that the policyholder becomes disabled or incapable, the premium is waived from your coverage. This will vary from different insurance companies.
  • Living benefits – this rider can be added after buying the whole Life Insurance Policy. It indicates to provide a partial payment of your death benefit during your lifetime. This happens when the policyholder is diagnosed with terminal illness.
  • Policy purchase – you have the option to buy a higher insurance policy when needed.
  • Long term care – you are paid for long term care once you meet certain requirements.

My Thoughts:

Be insured for a lifetime with the Whole Life Insurance Policy. Once you get to speak with an insurance expert, you can decide which type to get. The Whole Life Insurance coverage is a sure win to protect your family for a long time.

Jaime
Jaime London is a writer, contributor, editor and a photographer. He started his career as an editorial assistant in a publishing company in Chicago in 2009.