Are you thinking about purchasing life insurance? With so many types of life insurance policies, it can become hard to just pick one. That’s why our team of professionals from Insurance Consultants International are here to help you narrow down your list of options with some pros and cons of whole life insurance in Hollywood!
Before we dive into the pros and cons of whole life insurance, it’s important to first understand what whole life insurance is. Whole life insurance is a form of permanent life insurance which just like the name, can cover you for your whole life! Just like other permanent life insurance policies, whole life insurance accumulates cash value that could be borrowed from in the event you need money. Since this form of life insurance is permanent, you won’t have to worry about getting another policy when it expires like term life insurance. You can even choose to customize your plan with add-ons or riders to fit your specific needs.
There are several pros when it comes to having whole life insurance such as the following:
- Its permanent life insurance so you won’t have to worry about an expiration date or having to convert from a term to a whole life policy. You will be covered for the rest of your life.
- Since it’s a form of permanent life insurance you have the opportunity to accumulate cash value over time. You can use this cash value for additional investment strategies but you have to put it back into your policy, like a loan, or it will lower your death benefit.
- Whole life insurance is perfect for estate planning and can be a remedy to high estate taxes.
- You can expect your policy to have fixed premiums which means that your policy’s premiums won’t go up or down unexpectedly. With your premiums being fixed you can budget with one number for the rest of your life!
With every good there is a bad waiting right around the corner and with that being said, here are some cons associated with purchasing whole life insurance:
- The first downfall with whole life insurance is the fact that it isn’t the cheapest type of life insurance. Since it provides cash value benefit you will be paying the price by paying more monthly.
- Your cash value is a pro but the fact that you will have to pay that back as soon as you can is another downfall. Not only are you expected to pay back all you will have borrowed but you are expected to pay back that amount with interest included.
- Whole life insurance policies don’t offer a large return on investment and for that reason you might be better off investing into a 401K account.
When you make a decision on something as important as life insurance in Hollywood, FL, you should call our pros at Insurance Consultants International to make sure you are getting the best possible policy for your specific needs! Call us today.