Whole Life Vs Universal Life Insurance

You may find it a good idea to look at "whole life vs universal life" insurance. You probably wonder which is best for you and your family. Because more people are familiar with it let us take a look at the mechanics of whole life insurance policy first and find out once and for all which is best "whole life or universal life" insurance.



Whole Life Insurance

I have a certain fondness for the whole life insurance policy because of the myriad of benefits it provides. There is the guaranteed level death benefit that you cannot outlive. You also have a guaranteed premium when you purchase whole life insurance. Your premium never goes up. The whole life policy has a cash value as well as a dividend if the company performs well. The cash value is guaranteed and also earns a minimum amount of interest. Dividends are not guaranteed.

In our comparison of whole life vs universal life we must consider that the whole life policy dividend can be used to purchase paid up additions...which are really small paid up policies purchased each year which are added to the base policy. These paid up additions increase your death benefit and also have cash values. The dividend can be paid in cash or they can be used to reduce premiums.

With all these benefits when we look at whole life vs universal life we must also consider that there is a certain rigidity built into the whole life policy. That is the policy in a nutshell. It is a good policy but quite inflexible.



Universal Life

Universal life provides a little more flexibility than the whole life policy. Life insurance buyers today tend to favor term life insurance. Universal life is built on a term base. It is basically a term policy with an added savings element. You maintain a level death benefit but you also have the option of reducing the death benefit whenever you like. You can also increase the death benefit but you may be required to provide evidence of insurability at the time you choose to make the change.

The premium you pay usually remains level but you do have the option of reducing it. Here is where it is flexible. Let us suppose you bought a universal life policy and you applied 30% of your yearly premium to pay for death benefit and 70% of it to saving. You may decide 5 or 10 years down the line that you don't need as much life insurance as you now own. You can reduce your death benefit and apply the applicable cost to your savings plan.

Let us suppose, on the other hand, you decide that that you need additional life insurance 5 or 10 years down the line. You can reduce the amount of premium applied to savings and use it to purchase the additional term insurance you need. That means there would be no need for any additional outlay in premiums. You must, however, bear in mind that you have to qualify for the additional insurance. The life insurance company may ask for a medical examination.

Whole life vs universal life...those are the basic differences.

You may add the waiver of premium rider to either policy. The cost for the rider for the universal life policy is much lower than of the whole life as the premium for the rider only applies to the portion of the premium applied to death benefit. With the whole life policy the entire premium is waived in the event of disability.

You may also add the accidental death benefit rider to either policy.



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For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

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Term Life Verses Whole Life - Picking the Best Life Insurance For You

Most individuals realize how important life insurance truly is, but there is often a great deal of uncertainty and confusion associated with the selection process. When choosing between term life and whole life it is important to understand the fundamental differences. Both types offer the necessary protection that most families and individuals are in desperate need of, but there are pros and cons of term life that should be considered before deciding that it is the most appropriate choice.

Term life insurance is often referred to as temporary protection due to the fact that it provides a death benefit for a specific amount of time. At some point, the term policy will expire and will effectively leave the insured with no coverage. In contrast, whole life insurance is designed to cover an individual for the entirety of their remaining years and does not expire.

Whole life policies accrue cash value as they are funded by premiums, so they are often used as an investment vehicle. Term life policies do not accrue any cash value and simply end when they expire with no financial benefit or surrender value. Perhaps the most important feature of a term life insurance policy is its cost, which is often much lower than any other type of coverage. Although there is no cash value that accrues, the inexpensive premiums often attract consumers that would otherwise be unable to afford coverage.

While many individuals worry that term life insurance expires at some point, it is necessary to understand its designed purpose. Many lenders will suggest that a borrower maintains a life insurance policy during the period of time that their mortgage will last. For these such purposes, a 15 year term would be completely acceptable and a consumer would only pay for coverage when it was needed. There are many other financial goals that can be accomplished by retaining coverage for a specific amount of time, such as the period until a surviving spouse would be able to access retirement monies.

No matter what type of coverage is the most appropriate for your needs, make sure to be a wise consumer and only spend the money that is necessary. Because the insurance companies have widely varying premiums, shopping around can often save a great deal of money. Although comparison shopping is typically seen as a very time consuming process, the truth is that utilizing an insurance comparison website can be quick and easy.

Such websites will allow you to fill out a simple form and immediately receive multiple quotes from reputable insurers that would love to gain your business. Finding the best coverage is no longer an arduous task and it is remarkably simple to find adequate life insurance.

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Know The Difference Between Whole Life And Term Life Insurance

If you have decided that you want to invest in insurance you may be faced with a very difficult decision. Whole life insurance and term whole life insurance are two very different things that answer to many different aspects in your life as well as in your pocket. You want to make sure that you invest in the proper type of insurance as life and tern insurance can be more damaging than helpful if not chosen wisely.

Of course, before you can begin to even think about either of the two you need to first understand what the difference is, because this will help you figure out what is best for you and your family. It's also a great idea to turn to a professional to assist you with this important choice as a lot of money will be invested and you want to make sure that you and your family are covered well in case the unthinkable happens. Making sure that your family is secure long after you are gone and that they are left with money and not bills is of top importance and through whole life insurance or term whole life insurance this can be achieved.

Whole life insurance is insurance that lasts a lifetime. It doesn't have an ending term. This insurance is a better choice for a younger and healthier person as the life expectancy is much longer and it will be used longer. If you plan on paying the insurance for the next 20 years and are ready for such an investment and commitment, it's the best choice. Keep in mind however, that it comes at a high price, and you need to make sure that you really are ready for the commitment. In the case with whole life insurance you can actually cancel at any time, and a part of the invested money is returned to you. The premiums also stay the same over the years, so you don't have to worry about any increases. The premium is invested and grows over the years, then when either canceled or should the unthinkable happen happens, the agent takes the commission and your family gets the difference.

The difference with term life insurance is that it basically has an ending term, which is usually 10 years. It's less expensive and more appropriate for someone who doesn't expect to surpass those 10 years. It's a very good investment. One thing to keep in mind however is to know that if you choose to cancel your term life insurance you lose the money you have invested thus far.

The decision between term life insurance or whole life insurance is a very difficult one and you need to be fully educated before you make a commitment. If necessary consult with a professional to determine which is best suited for you.

Writing on Finance especially Life Insurance is like a passion for Iftikhar Tirmizi, check out for his latest articles on Whole Life Insurance

Life Insurance - Pros and Cons of Term Life and Whole Life Policies

"Do I need life insurance?" "Is whole life insurance a good investment?" "Is term life insurance risky?" Questions like these are posted in online communities on a daily basis. The answers vary widely, with the term life and whole life camps polarized. The tone of the debate is surprisingly strident. After all, the topic is insurance--not a something expected to inspire strong opinions, let alone strong language. But words like "rip-off," "scam," and "waste of money" fly back and forth, sometimes accompanied by rows of exclamation marks or worse. What is behind the brouhaha? And which camp -if either - is right?

The two sides do not even agree about whether a person needs life insurance. Whole lifers say, yes. You do not want the death of a family member to disrupt your family's finances or jeopardize its future. It is hard enough to adjust to the loss of a loved one. Adding financial difficulties exacerbates the problem. With the skyrocketing costs of funerals, even children and seniors should have at least a small life insurance policy.

Not so fast, say the term lifers. The only reason to have life insurance is to replace the lost income of a family member who dies, and then only when the spouse or family is dependent on that income. If you are single with no dependents and no debts that might be transferred to your family in the event you die, then you do not need life insurance. If you are married and your spouse works, you probably do not need life insurance, either, assuming your spouse makes enough to support himself or herself.

The time for life insurance, term lifers say, is when the policyholder's income is vital to the financial security of the family. If, for example, you have purchased a home together and your spouse could not pay the mortgage and other bills by himself or herself, then life insurance is in order. If you have children, you will want to have enough life insurance to allow your family to maintain its lifestyle after you are gone. This includes not only meeting day-to-day expenses, but also being able to follow through with plans for higher education. Insurance professionals recommend buying a policy with a face value 5-10 times the breadwinner's annual salary to help family meet expenses for a period of years.

Whole lifers see problems with the term-life scenario. The view it as overly optimistic, even naive. Many things can happen during the 20- to 30-year period covered by term life insurance policy that could extend the need for coverage beyond the policy's end date. For example, children may be born mentally retarded, with severe autism, or with another serious condition that could prevent them from becoming independent when they reach adulthood. Children also can develop a disease or suffer an accident that disables them. A spouse, too, can become disabled. In these situations, the family will remain dependent on the breadwinner's income long after the term life policy expires.

Term life insurance advocates point out that in such cases, the breadwinner can renew the term life insurance policy, or take out a new one. Now it's the whole lifers' turn to say, "Not so fast." By the time the second term life insurance policy is needed, the breadwinner will likely be in his or her fifties or even sixties. Due to the age of the insured, the cost of a second term life insurance policy will be much higher than the cost of the first was.

With the added years come added risks of certain diseases. If the breadwinner is obese, has developed high blood pressure, a heart condition, diabetes, or another disease, the cost of the term life insurance policy will skyrocket. If the individual has developed cancer or AIDS, he or she may not be insurable at all. In such situations, the cost savings realized on the first term life policy could be wiped out by the high cost of a second term life policy.

By contrast, the premiums of a whole life policy are set for life and do not go up with age or medical condition. A whole life policy cannot be canceled due to medical conditions, either. The policy remains in force until death, as long as the premiums are paid.

"Until death" is another advantage of whole life, its advocates maintain. Whole life gets its name from the fact that it insures the policyholder life until death. As a result, whole life insurance is guaranteed to pay a death benefit-the amount the policy pays upon the death of the insured. The death benefit can be increased-at certain points at no additional cost-as the policyholder ages. A small policy designed to cover the funeral costs of a child can be increased to provide adequate coverage during an adult's peak earning years. Whatever the death benefit or "face value" of the whole life policy, the insurance company guarantees to pay it. As a result, the policyholder or his or her beneficiaries always receive some, all, or more than the premiums paid into the policy.

This is not the case with a term life insurance policy, whole lifers point out. The term life insurance policyholder can pay premiums for 30 years, but if he or she outlives the policy-even by a day-then all of the premium money is gone. The only thing the policyholder will have received is 30 years worth of peace of mind.

Whole life insurance, by contrast, accumulates a value that the policyholder can access during his or her lifetime. This value is known as the cash value or the surrender value. The whole life policy holder can use the cash value as collateral for a loan, or even borrow some of it during his or her lifetime. The policyholder must pay this amount back. If he or she dies before it is paid back, then the unpaid amount is deducted from the death benefit. If the policyholder decides to cancel the policy, the insurance company will pay him or her the cash value, which is then known as the surrender value. Whole life, its proponents maintain, is not only insurance against death. It is an investment for life.

This is where the debate turns nasty. Term lifers often ridicule the investment features of whole life. Because whole life always pays a death benefit, it costs 5-10 times more than term life does. Term lifers argue that a person is much better off getting a term policy for the same face value that they would get a whole life policy, then saving and investing the difference in premiums. Almost any investment will return more than a whole life policy will, term lifer proponents maintain. Over 20 or 30 years, the difference can be vast. Buy insurance to insure, the term lifers say, and use the savings to invest.

Whole lifers respond that the return on a whole life policy is guaranteed at the outset, something than cannot be said for other investments. To earn greater rewards, the term life policyholder must take greater risks in the open market. Many investments will outperform whole life insurance, but not all will. Some investments lose money, as shareholders in World Com, Enron, Peregrine Systems, and many other companies can attest.

Even if the investment will pay out, it is not certain that the term life policyholder will actually make it. To do so, he or she must calculate the amount saved over whole life insurance; save that money every month, quarter, or year; research possible investments; and contribute to that investment regularly for 20 or 30 years. This makes sense for disciplined and savvy investors, but many others will find the endeavor daunting and time consuming. They may not start it, and if they do, they may not continue it. Whole life takes care of insurance, savings, and investment in one easy payment. Even if the returns on whole life are not great, saving something is better than saving nothing, and nothing is exactly how much many term life policyholders will end up saving.

Both whole life and term life have pros and cons. People who are financially savvy and disciplined will gain from the term life scenario. Those who need a convenient and simple mechanism for insurance and savings will benefit from whole life insurance. Deciding which is best for you requires an honest appraisal of your goals, your lifestyle, and your investing skills.

An award-winning author of books for young adults, Bradley Steffens is a frequent contributor to online and print publications, including Gig and Broker Agent Magazine. A copywriter with 25 years experience, he creates website content for health insurance, life insurance, and homeowner's insurance professionals. His most recent book, Ibn al-Haytham: First Scientist, is the world's first biography of the medieval Muslim scholar known in the West as Alhazen.

Find Life Insurance Online - Term Life Or Whole Life?

With the advent of the modern Internet it has never been easier to find the best life insurance policy to fit your needs. Online you can investigate dozens of different companies and even get free quotes without ever leaving the comfort of your own home or have to talk to a sales person.

Even with all of this information available right at your fingertips you still need to use some common sense and have a little bit of knowledge to find the best solution for your unique situations. The information below should help prepare you for finding the insurance policy that best fits your needs.

The very first decision you will need to make is to decide if which type of insurance will best fit your needs. The two most common types of insurance available today are whole life insurance and term life insurance.

Whole life insurance, just as the name implies will remain in affect for your entire life. Provided that you continue to pay your premiums or that the policy has enough cash value to sustain itself. Whole life insurance will almost always cost more for the same amount of coverage than term life insurance. There is a cash value aspect associated with whole life policies. The cost of the monthly payment in excess of the actual amount required to cover the actual cost of the monthly premium is invested.

Since whole life premiums will have a cash value under certain circumstance it can be possible to take a loan out against the value of the policy. You need to keep in mind though that if you take a loan out not only will you be losing any potential interest that you could be gaining with that money you could also incur tax liabilities. You might also have to pay taxes if the value of the policy is higher than the premium.

Term life insurance is only in affect for a set period of time, this time period is known as the contract period. You will find that the premiums for term life insurance will be significantly cheaper than the premiums on a whole life policy for the same amount of coverage.

A term policy will never have any cash value, it is worth the amount of the coverage if the insured person dies during the contract period. If the contract expires with out the policy being exercised then there is no value and no benefit is paid out.

Term life insurance is often used by people with families to cover the expenses of raising children if one of the parents were to die unexpectedly. It is purchased to cover the time period when the children are still dependent on their parents for financial support. For many people after their children are grown and independent they find that the level of coverage they need to carry is reduced.

Once you have determined which type of insurance is most suitable for your situation the next question is to determine how much coverage to purchase. Coverage amount will be discussed in the next issue of this series.

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Term vs Whole Life vs Universal Life Insurance - Compare Life Insurance For Your Best Buy!

Term Life Insurance

Just as the name, term life insurance says, this type of life insurance is purchased to last a set amount of time, or a term. Terms may be from one year to 30 years. The amount of time that the life insurance is purchased for should represent the time that an insured person feels they need that coverage. Sometimes people use the length of their home mortgage and sometimes they think about how many years their children will depend upon them for support.

Since the life insurance company only takes on liability for a set amount of time, they will offer larger face amounts for less money. After all, the life insurance company will require an application, and possibly back that up with other research on a potential customer's general health. They will take an application, and only offer life insurance to people that they believe will survive the term of the policy. Of course, longer terms will usually cost more than shorter terms. But the fact that a term exists, means that this sort of life insurance will cost less than any permanent insurance for the same face value of death benefits.

Whole Life Insurance

Whole life insurance is the traditional form of life insurance. It does not expire at a set term, but as long as it is paid up, will last for an insured person's whole life. It can also build up a cash value that can be taken out or borrowed against. In this way, whole life is not just insurance, but can also become an asset.

Whole life insurance is, of course, more expensive for large amounts than term life for the same individual and death benefit. However, in small amounts, it can be an affordable way to purchase life insurance that will settle final expenses for an older person, or a person with health issues. Many people purchase final expense or burial policies for senior citizens, and these are simply smaller face value whole life insurance policies.

Of course, children are fairly cheap to insurance. The purchase of a whole life policy on a child would give them the gift of lifetime protection. Sometimes these policies can be paid off over a set amount of time, and the child will have a valuable asset and protection when they get older!

Universal Life Insurance

Universal life insurance is a new product, and is more complicated. It is permanent life insurance, but can also have a term insurance rider. For instance, a man with three kids may want extra protection while his children are young. Then, when he anticipates that his children will not depend upon him, he may drop the extra term life, and just have the permanent life insurance.

The central thing about universal life insurance is that it is also used as an investment. Policies may be tied to market rates, so any money put into the policy, that is not needed to pay for the current life insurance bill could grow as an investment. This can increase the value of the policy's cash amount, and even increase the face value or death benefit of the life insurance.

Term Life vs Whole Life Vs Universal Life

So which is better? Well, that depends upon your own needs, expectations, the type of insurance you can qualify for, and your budget. You need to decide if you only need life insurance for a set amount of time, or if you would like protection for your whole life. Do you want to use life insurance as an investment? Do you want some combination?

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Whole Life Vs Term Life Insurance Comparison

The two main forms of life insurance are whole life and term life. If you are in the market for a life insurance policy, you should make sure you understand the difference between the two before you buy anything, so let's talk about the difference between whole life vs term life insurance.

It's pretty simple, really. Term life is only an insurance policy. Unlike whole life, the policy itself doesn't build up a cash value. It isn't worth anything unless you die and your beneficiary is able to collect the insurance. You can't get any money by cashing out the policy when you no longer need life insurance.

A whole life policy is another matter. You see, if you keep paying the monthly premiums on a whole life policy, after awhile you will be able to cash it out if you choose to do so. You usually have to own the policy for a certain amount of time before it accumulates any cash value. After that, the policy continues to increase in value over time. It could amass a value of thousands of dollars before you reach retirement age, depending on when you start the policy.

It's easy to be led to think that a whole life policy must be a better deal because you are getting something extra. However, that is not necessarily the case. It's true that the term life doesn't have a cash value, but the premiums are usually much lower as well.

You have to take the difference in price into consideration when deciding which life insurance policy is the better value. You also have to consider whether you are really getting anything extra at all by purchasing whole life.

You see, even though the insurance salesman makes it sound like you are buying something extra by getting a whole life policy with a cash value, that is just not the case. The way whole life works is this: if you die while insured, your beneficiary gets the insurance but not the cash value. If you cash it out, you get the cash value but not the insurance. So what were you paying extra for?

Let's look at it another way and consider a different option. You will pay less for a term life policy than for a whole life policy, so consider what would happen if you invest the difference into an investment that is likely to give you a better return on your money, such as a mutual fund. If you do that, you will have both the investment and the insurance for the same cost as the whole life policy, which will only allow you to collect one or the other.

Before you purchase any insurance policy, you should do the math yourself and determine which type of life insurance policy is best. Don't just take my word for it, or the salesman's either. If you evaluate both policies carefully, you will probably find that the term life insurance provides the best possible value for the money.

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Comparing Term Life Vs Whole Life Insurance

You may be one of those people who are completely confused about the difference between term and whole life insurance. Well, you're not alone because many people don't fully understand why these two insurance types are different. It is important for you to compare term life vs whole life before deciding on which one is the best for you. They each have their own unique characteristics and offer similar but different benefits.

Term life insurance is focused exclusively on life coverage. It only pays out to your designated beneficiary when you die. Term life can be purchased for any period of time from one to thirty years. On the other hand, whole life insurance combines the benefits of a term policy with investments. These investments are generally made up of bonds, money market certificates and/or stock issues. Over time, the amount of money you have paid into the policy can be borrowed against. Whole life policies come in three different categories: traditional, universal and variable. With both term and life policies, you can expect that your monthly premium payment will never increase.

Because whole life insurance gives you investment options, you will pay more for it. You need to keep in mind, however, that these types of policies are not good investments and you likely could get a better return if you put your money somewhere else. They definitely are not the best choice for retirement income because of their low rate of return. They also are known for their high start up fees and there are generally very large commission costs also. In comparison, term life insurance is more affordable to most people. Premiums start to rise if you purchase it after age 50 and it gradually becomes more expensive. There are many term insurance companies that prohibit anyone over age 65 from purchasing their term policies.

Only you know which type of insurance is the best option for you. Before making a final decision, take the time to look closely at both term life vs whole life insurance. They both have advantages and disadvantages. In any case, one of them is sure to meet your own personal goals and financial needs.

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Whole Life Insurance, Universal Life Or Variable Life?

You may want whole life insurance but did you know that it is only one type of permanent life insurance? Here's a brief overview of the different types to help you when shopping for a quote.
Unlike term life insurance, permanent life insurance doesn't have a set term that will end and your beneficiaries no longer get a death benefit. What's more, permanent life insurance policies can build up cash value, money that you can receive before you die, and thus are also considered a supplementary investment vehicle. The basic types of permanent life insurance are whole life insurance, universal life insurance and variable life insurance.
With whole life insurance you pay a set premium for the life of the policy. The amount of your death benefit also stays the same. The savings portion is usually a dividend.
Universal life, also known as adjustable life insurance, is a more flexible policy in that you can increase the death benefit as long as you pass a medical exam. Your cash value typically grows at money market interest rates and after awhile can be used to help offset your premium.
Variable life pays a death benefit and also accumulates cash value based on investing in stocks, bonds and mutual funds. Because of this, there is an element of risk.
Permanent life insurance usually costs more than term life insurance because of these features. After you've decided what type of insurance is best for your situation, make sure to get several comparison quotes as rates can vary from one company to another. You can get quotes online from either the life insurance companies' Web sites directly, or through a Web site that allows you to get several comparison quotes at once.
Before you buy, you'll want to thoroughly understand the policy and don't be afraid to ask your agent or the company representative questions.



To get free comparison whole life insurance quotes or learn more about whole life insurance visit LowerYourInsurance.com. Scott Lunt is a freelance writer.

Term Life Vs Whole Life Insurance - What's the Difference?

Term life vs. whole life insurance is a very popular subject when it comes to life insurance. A term policy is a policy that is allotted for a certain period of time, or term, and then paid out if necessary. The policy can be renewed if necessary before it comes to term, but if you let it lapse, you will usually lose most or all of the money that you paid in to the policy.

A whole life policy is generally started when you are young, and appreciates in value over time. The face value is what the policy is worth after a certain time (usually 100 years), and the cash value, or how much you'll actually get, is what you've paid in over time.

As you pay into a whole life policy, the premiums will increase with age. However, you can find average plans that will allow you to pay the same premium for your entire life, if you can afford to pay higher premiums to begin with.

Term life vs. whole life insurance is basically the difference between having a life policy for 5, 10, or 20 years or having a life policy from the time that you are young until you die without having to renew it or worry about policy lapses.

When it comes to the benefits of term life vs. whole life insurance, there are many different things to consider. What is beneficial to one person might not be beneficial to the next, and so on. In order to choose the right policy, you will need to consider how much insurance you need, what you can afford to spend, and where you are at financially and age-wise in your life.

Older people will fare better with term policies, while younger ones might find more advantages to the whole life policy. It's all a matter of personal choice, so you need to understand your options to make the best decision.

If you are having trouble choosing between term life vs. whole life insurance, can always talk to an insurance agent to figure out which option will be best for your situation.

Whatever you decide you need to make sure that you do not jump into life insurance unprepared because you could likely wind up getting the wrong policy, the wrong amount of coverage, or simply choosing something that is not effective based on your needs . . .

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Whole Life Insurance - Whole Life Insurance Information

The original purpose of life insurance was to provide for your family in the case of your death. While this purpose is still the most potent reason to take out a life insurance policy, there are a number of other ways that life insurance can be used to benefit you and your family, even while you are still alive.
The key is in choosing a whole life policy rather than a term life insurance policy. A whole life policy is sometimes called ‘permanent life’ insurance. It will cover you throughout your life rather than just for a specified amount of time, or a term. There are many advantages to a whole life policy over term insurance, and many ways to make a whole life policy affordable.
The cost of a whole life policy is based on the ‘face value’ of the policy – the death benefit that it will pay if the insured dies. A whole life policy that will pay $100,000 if the person insured dies has a face value of $100,000. As you pay premiums on your life insurance, those premiums accumulate into a ‘cash value’ – the amount of insurance that you’ve paid into the policy. Most companies base that figure on making payments for 100 years, which is the point when the face value and the cash value will be the same.
Generally, your whole life insurance premium will rise as you get older, reflecting both the added risks that come with age and the fact that your income will also likely rise as you grow older. This is often the most affordable option for young people who are just started to rise in the work world. You’ll pay lower premiums at the start of your whole life policy, and they will gradually rise as you age.
Most life insurance companies offer the option of level premiums based on averaging out the cost of your whole life policy over the entire life of the policy. In that case, your premium will never change, but you will pay higher premiums early on in the life of your policy. If this is affordable for you, it’s a good option to lock in a premium amount that won’t leave you facing the prospect of losing your whole life policy before it matures because the premiums have become too expensive to maintain.
If you carry a whole life policy, you’ll have the option to borrow against the cash value built into your policy under certain conditions. You can, if necessary, cash out your policy earlier, but a better option is to take out a loan from the insurance company against the accumulated cash value in your policy. It can be used to fund your children’s education, to deal with unexpected expenses, or even to take a dream vacation. While you’ll have to pay it back, it will be at much more affordable interest rates than you’d pay a bank.
If you have the option, an affordable whole life insurance policy can be one of your best hedges against unexpected expenses and retirement.
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Which Insurance Best Fits Your Needs - Term Life Or Whole Life Insurance Policy?

There are two general types of life insurance; Term life and Permanent life. Term life is the simplest form of life insurance and can provide substantial coverage with affordable premiums for specified periods of time of one year (annual renewable term) up to 30 years. Permanent life is a form of insurance that spans your entire life. It is more expensive than Term life insurance, but allows you to build cash value.
Determining the best deal life insurance to fit your needs depends on a number of factors, including:
· How long you will need the insurance
· How much you can afford to spend on insurance
· Your financial objectives for purchasing insurance
· How much risk you are willing to take
Most of the time, a medical exam is required to qualify for life insurance. But it depends on the type of coverage you're purchasing. Often, insurance companies require brief medical exams to qualify customers. This can include a basic physical exam, urine specimen, blood work, EKG, and X-ray. For high amounts of life insurance, such as $2,500,000 and up, treadmill EKGs are usually required, too. There is no cost to you for the exam, and an appointment may be scheduled at your convenience in your home or office.
Typically, insurance medical exams are done by paramedicals who are licensed health professionals and who are often independent contractors hired by the insurance company. Paramedicals can also perform employment physicals and drug screening. They're quick at what they do -- you'll usually get a call within a day and are examined within three days.
Whether or not a life insurance company requires a medical exam from people who are applying for insurance really depends on the company's underwriting requirements and the type of policy you are purchasing. Insurance companies' criteria are based on how old you are and how much insurance you're applying for.
Certain health conditions simply cannot be masked, but to obtain the best possible results, here are some recommendations.
· Get a good night's rest the night before your exam.
· Don't drink for at least eight hours before the exam.
· Don't smoke or chew tobacco for at least an hour before the exam.
· Avoid coffee, tea, or other caffeinated drinks like cola for at least one hour prior to the exam.
· Limit salt intake and high-cholesterol food 24 hours before your exam.
· Don't engage in strenuous physical activity 24 hours before the exam.
When deciding which type of life insurance would best fit your needs it is also important to consider death benefit, premium and cash value. Term life insurance provides a death benefit for a stated period of time, while Permanent life insurance provides a death benefit for as long as you live. Permanent life insurance premiums are generally level and payable for life. Term life insurance premiums will increase over time (at each renewal) and are payable for a specific period of time. Term life insurance does not accumulate cash values and does not earn dividends. Permanent life insurance accumulates guaranteed cash values and its policies may be eligible for dividends.
When it comes to choosing life insurance one of the most important things is to look for a policy with benefits and premiums that match your present and future needs and ability to pay. The correct product for your situation may be a combination of permanent and term life insurance, since most people have a need for both temporary and lifetime protection.
Chris Simons is a prolific freelance writer. You are welcomed to visit [http://life-insurance.cyberinformer.com], for more information on Life Insurance [http://life-insurance.cyberinformer.com].