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Best whole life insurance

Best Whole life insurance - Coach B. Insurance

According to Wikipedia, whole life insurance, sometimes called “straight life” or “ordinary life,” is a life insurance policy that is guaranteed to remain in force for the 

insured’s entire lifetime, provided required premiums are paid, or to the maturity date. As a life insurance policy, it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the policy’s beneficiaries when the insured dies. 

Whole Life Insurance Explained

The first thing to know is the difference between term and whole life insurance. It will help you understand the entire life better. With term life, you can get temporary insurance coverage with death benefits. 

When it comes to getting the best whole life insurance, an insured can get death benefits with an added feature. This additional feature is the cash value component of the policy. Typically, part of the premium is used for building cash value over time. It is an account with interest, so cash value from your premiums adds up to increase your cash account in the policy. 

Whole Life Insurance Pros and Cons

Surprisingly, there are many advantages that one can reap out of getting  the best whole life insurance policy. Let us find out each benefit and know if it is applicable for you. 

Pros

It is Lifetime Coverage

It offers coverage and security as long as you live. All premiums you pay for the entire life of the policy is guaranteed. The truth is that it has a higher monthly premium than term life. Although it is a bit expensive, it leaves you with peace of mind knowing that it will not expire. There is no need to worry that it will pass and go through the initial process to renew your policy. 

Having the best whole life insurance policy can assure you that your family is covered if something terrible happens to you. It can become a source of income after your death or pay unpaid debts. 

It is a fact that life insurance gets expensive as you age. By the time you need to renew your term, you might be already in your 50’s and the premium might shock you. As you restart the term, you will not pay the same rate. You may need to undergo underwriting and take a medical examination. The result of the underwriting and you’re medical test results will determine the best whole life insurance cost. With the best whole life insurance, you will pay the same rate for a lifetime. 

Is Whole Life Insurance A Good Investment

With the buildup of cash value, one of the main benefits it can offer is getting loans from a policy that is non-taxable. Therefore, one becomes at peace, knowing that the money you borrow from the cash value is non-taxable. Also, death benefits are not taxable by the time that your beneficiaries will make a claim. 

It is a Guaranteed Policy

Many policies under whole life are sold as guaranteed. All paid premiums and an interest rate are guaranteed. However, some may think that the investment return may be low, but this is not the case for every policy. In times when the economy is at its best, the interest rate will surely go up. However, when it falls, then you will only get a minimal amount of ROI. Whatever it may be, the important thing is that you will acquire guaranteed benefits and cash value. 

A loan from the Cash value

Another great thing  is that you can  get the best whole life insurance without a medical exam or with a medical exam is that you can borrow from it. Borrow against the policy’s cash value. However, borrowing is only possible after a certain number of years. Also, only a portion of the accumulated cash value is available for a loan. The policyholder may use the money for whatever purpose. 

Moreover, you will have an option to repay what you borrow or not. In case you choose not to pay back the loan, it might affect the value of your death benefit. It can happen if you die after borrowing money against the policy. 

Cons

Disadvantages Of Whole Life Insurance

There is always a wrong side to anything. Although whole life is a smart choice for those who want some cash in the future, it may also have some disadvantages. Here is the other side of the story when it comes to getting the best whole life insurance policy.

It is Expensive

There is no such thing as cheap whole life insurance when compared to term life. The reason is the fact that it covers the feature of cash value accumulation. It means that the more extensive coverage you buy, the more expensive it gets. Therefore, policyholders need to read and understand the fine print in detail. It is to find out any exclusion and how long is the guaranteed period. You need to become a wise policy buyer, so you will not experience a future problem.

Lower Interest Rates

If you are interested in investing and earning more money, then this policy might not suit you. The interest rates that it will achieve in the future are less than what you can get if you invest in an indexed universal life insurance policy. Also, money market, mutual fund, interest making investments, and stock market are some platforms to earn a better interest rate. However, remember that these options are for risk-takers. If you are not willing to risk money in these investment platforms, the  best whole life insurance policy might be a good fit for you.

It is an Inflexible Option

When compared to other types of insurance coverage, the best whole life insurance is the most limited option. You will not get any input on how they use your premium, how much of it is invested, and how much cash goes to the cash value accumulation. 

Therefore, you do not have the power to change any policy portion according to your advantage. On the other hand, a universal life insurance policy is different as you can make alterations. It can offer you the freedom to change death benefits and flexibility in paying monthly premiums. 

How much life insurance do I need?

Whole life insurance calculator

Life Insurance Need Calculator
This calculator will help you to decide how much life insurance you need if your survivors invest the life insurance benefits they receive.

Funeral cost, estate taxes, etc. ($):
Amount needed to pay off non-mortgage debt ($):
Amount needed in emergency fund ($):
Amount needed in college fund ($):
Expected average annual living expenses ($):
Expected spouse's average annual income after taxes ($):
Annual Social Security Benefits ($):
Spouse's current age (#):
Value of current liquid assets ($ total of savings, investments, etc.):
Expected survivor's investment strategy:
Life insurance needs:

Juvenile life insurance 

Juvenile life insurance - Coach B. InsuranceA child will not have the same reason as you for having life insurance. Children and babies do not have someone depending on them. However, there are other valid reasons to consider getting one. One is the very low monthly premium. Also, the most significant benefit is the fact that they carry their life insurance for life. Again, the cash value will grow as they grow. The money will earn cash value more than what you can get by depositing it in a bank.

Although the worse case is the death of a child, the financial burden of funeral costs will not give you further heartache. The decision still depends on your situation in life.

Child Life Insurance

There are lots of factors that can affect qualifications for the best whole life insurance. For instance, age, health condition, and financial status are some. Therefore, a baby does not have to worry about age, health, and income. 

Babies and children have all the time in the world, and they have a longer time to live. Insurers will think of it as an advantage as they do not have to cash in for a short time. The best whole life insurance for babies and children are considered to have the lowest risk. Therefore, they can get no exam whole life insurance coverage. Insurance providers can offer them any life insurance policy. 

Best Whole Life Insurance Policy For Children

Children can get the lowest possible monthly premium rates. Parents have the opportunity to get at the lowest rate. It is known as the “locked in.” Likewise, it means that the policy is protected from rate increases over time. The rate of the premium will not change as they get older and develop some health issues. The total amount of insurance is lesser if a parent will plan earlier for their children’s future. Mutual of Omaha whole life insurance and Gerber  whole life insurance are two of the best options that offer low-cost whole life insurance with no medical exam.

Smart Way to Save

Getting the best whole life insurance with no medical exam is not all about security, but it is an excellent vehicle to start financial growth. Permanent life coverage can offer policyholders a good return of investment plus a death benefit that their family can get if they die earlier.

The best thing about life insurance is the fact that it’s cash value is non-taxable. Also, it can perform better than other risk-free saving platforms. It depends on the type of policy that you will get for your child. Each policy can help your child to secure their future. One could use the money for funding their college tuition and other goals. It can give parents and grandparents peace of mind knowing their children or grandchildren’s future is secured.

Whole Life Insurance Cash Value

The separate account feature of whole life insurance coverage is known as the cash-value account. It is something that increases its value over some time. Therefore, the longer the policy is, the more cash value it will earn. That is why it is wise to start while young, so there is enough time to grow the cash value. By getting life insurance for your baby, the cash value will have enough time to increase its value. 

Furthermore, it can help you decide to weigh the pros and cons of getting it while still young. The benefits will always outweigh the opposing side. 

How Much Is Whole Life Insurance

What exactly is the average cost of the best whole life insurance? A great way to find out is to get the best whole life insurance quote online from one of our best whole life insurance companies.

Whole life insurance quotes online

Can I Get Life Insurance For My Grandchild?

Surprisingly, an increasing number of grandparents want to secure their grandchild more than the parent. Grandchildren are the joy and life of elders, so they want to ensure the best life. 

The answer is yes. Grandparents can apply for life insurance for their grandchildren. However, parent’s permission may or may not be needed depending on the state. The grandparent will be the policyholder on behalf of their grandchildren. Therefore you will be the one to pay for its monthly premium. Also, you are to choose your beneficiaries, and that would be your grandchildren.

If you are still undecided about whether to get life insurance for yourself or your children, we are here to help you. Coach B can give you all the information and advice you need, but you will decide on your family’s future. We can offer you a no-obligation and no-cost professional service. Get in touch with us at 800-342-1537, so we can help you find the right insurance package for you.

Meet the team

About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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