Whole life insurance is very probably, of all the life insurance policies that exist in the market, one of the most unknown to users, despite having very advantageous characteristics for those who contract it:
Life insurance for life
As its name suggests, it is a life insurance policy that provides lifetime coverage. This is one of the great differences with a common risk life insurance, in which an age of exit from the contract insurance is mark, which is usually between 65 and 70 years.
In this case, the heirs will always collect regardless of the age at which death occurs.
Callable premiums
Another advantage is that it is redeemable after the second year. This is a long-term product, since in the first years the surrender value will be below the premiums pay. But over the years, that amount will even out, and later, thanks to profit sharing, the surrender value can be well above the premiums contribute. This is why we may be interest in contracting this product as a complement to our retirement with which we have also had “free” life insurance during all the years that we have maintain the contract.
Constant premiums
It is the big difference with respect to a common life insurance, whose premium will increase as we get older until reaching figures that the client rarely bears until the end of the contract. With this insurance, you will pay the same premium for the first year until death occurs or until you decide to redeem. In addition, you can opt for a modality in which you stop paying when you are 70 years old. Of course, you continue to maintain your death coverage and your money will continue to grow thanks to the participation in profits.
Cost effectiveness
In these times it is difficult for us to find savings products that, being guaranteed, give us an attractive interest rate. With whole life insurance, in addition to having a guaranteed rate, it offers us an interest rate that has exceeded 4% in recent years thanks to profit sharing.
Now is the time to look at your life insurance, compare and see if the one you currently have is really worth it, or if, on the contrary, you want to find out about all the advantages that whole life insurance offers you.
How to choose the most appropriate insurance for my needs
Hiring insurance is a way to protect our assets and loved ones from unforeseen events to which we are all exposed, such as an accident, illness or sudden death.
However, not everyone needs the same type of coverage. For example, do I need life insurance if I don’t have a family? In what cases could an insurer refuse to pay a policy?
This guide will help you choose the right insurance for your reality. Starting with basic concepts to the steps to collect your policy.
General insurance or individual insurance? How to choose insurance
What type of insurance do I need? The answer is “it depends”. The type of insurance you need depends on what you want to protect.
The first thing you should be clear about is that insurance establishes a commitment between an insurance company and a person, so that if the latter suffers any damage, they will be compensated.
There are different types of insurance, from those that protect your life to a trip. Moreover, it is say that there are as many insurances as there are risks. To choose it, it depends on your concerns or needs.
If you are worry about being unable to work or that your assets will be affect by an accident, this financial instrument may be your solution.
As we saw in the blog “key elements of an insurance policy”, material and immaterial things can be insured. It is enough that they are taxable in money, that they may be at risk at some point and that they are not of illicit origin.
