Insuring Your Whole Life
These days, protecting yourself for life is essential. It provides protection to us and to our loved ones. If we have bought life insurance, we can rest assured that the benefits will go to the right persons. In the world of today, money is security, and a life insurance plan goes a long way in providing this security. For some people, life insurance provides a valuable investment opportunity. Insurance plans that build cash value and offer tax benefits can be regarded as a mode of getting value for our invested money. However, insurance plans are primarily meant to build security. If one is looking for solely an investment option, it would be advisable to find a different mode.
These days, we can make our choice from among the many life insurance options. Looking at the very basics, we have a choice between term life insurance (which provides coverage for a specific number of years) and whole life insurance (which provides coverage for one's entire life). While both these have some positives and negatives, I find myself in favor of the whole life insurance option. This gives us a number of plusses that is missing in the term life insurance option.
First of all, whole life insurance plans invest part of the premium amount that has been paid and help build cash value. After a period of time, it may so happen that the cash value itself ends up bearing the costs. This is a big plus that is absent in the term life option. Moreover, most whole life insurance plans require only a single medical examination. Thus, one is able to eliminate the trouble of periodically going for medical check ups, unless one decides to alter one's current plan. The tax savings that are incurred also work up to a decent amount of money.
In addition to these advantages, one also has to select from among three basic kinds of whole life insurance. The first of these is the traditional whole life insurance. This guarantees the insurer of a minimum rate of return on his/her cash value. A second kind is whole life insurance that is interest-sensitive. In this case, the policy offers a variable rate on one's cash value. The third type is one that involves a single premium. This is suitable for those who already have enough money to fund an insurance policy. Thus, even after choosing between whole life and term life insurance, there are several choices that still have to be made regarding the policy.