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What You Need to Know About Whole Life Insurance Quotes

Published September 5th, 2022 by Island Insurance Agency

We all know we won't live forever. Yet a lot of us live as if we will live forever. Experts estimate that approximately 25 percent of all Americans do not have life insurance at all. 

This statistic doesn't include the people who have inadequate insurance. It's time to think about the future and how you can take care of those you'll leave behind. 

Your best gift to the people you love is adequate life insurance. Keep reading to learn more about how to make sense of whole life insurance quotes. 

What Is Whole Life Insurance? 

Whole life insurance is one of the best types of life insurance if you'd like to make an investment and take care of your family at the same time. It provides lifelong coverage and stable premiums. This means that you'll pay the same amount of money for your insurance each month as long as you have the policy. 

The best whole life insurance will double as an investment. A portion of your premium goes toward an investment, giving your policy a cash value that will grow at a given rate determined by your insurance company. Typical whole-life policies have a growth rate of 1.5% to 3.5%. 

Other life insurance policies do not have a guaranteed return. They're just a standard amount that your family will receive. 

If your policy gains enough cash value, you can take loans out against the policy. When you die, your stated beneficiaries receive the tax-free payout. 

Whole Life Insurance Quotes

Whole-life insurance quotes depend on the current whole-life insurance rates. As you begin shopping for life insurance, you'll quickly discover that whole life does cost more than term life insurance. This is because the whole life will be worth more down the line than a term policy will. 

Remember that a portion of your premium is invested and thus grows. With a term policy, you pay a single low rate for the term. At the end of the term, you will either let the policy go or you'll have to renew it, usually for a higher premium. 

A whole life policy does not have an ending term. You will always have it for the same rate. 

Value of Whole Life Insurance

A whole life insurance policy is a good fit for you if you can afford the higher premiums and are a high-income earner that has maxed out other investments such as your 401(k). 

If you have a lifelong dependent such as a child with special needs, a whole-life policy makes sense. Your child will have that cash policy once you're gone, and they should have enough to care for them for the rest of their lives

A whole life policy is also valuable if you're a higher earner who will have high estate taxes when you die. Such a policy will give your family the resources they need to pay estate taxes

Whole Life for a Good Life

As you look at whole life insurance quotes, remember that a good whole life policy will also give you a good life right now. It will accumulate a cash value that you will eventually be able to borrow against. 

Do you need life insurance or any other kind of insurance? We can help. Contact us today and let us help you protect yourself and your family with the right insurance.


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