Affordable Whole Life Insurance – How to Insure Yourself Affordably

The following advice will guide you in the search for affordable whole life insurance. Insurance remains important to have no matter how tough economic times are, in fact the harder the times the more critical being insured properly becomes. However, finding just the policy needed and at a rate your budget can withstand can be far more challenging.

Here’s how to make an educated insurance purchase decision.

Characteristics of Affordable Whole Life Insurance

Whole life insurance has a number of variations and the variations can impact the cash value or death benefits as well as how the premiums are paid. The price tag will depend on how much of a benefit is sought and the type of whole life insurance contracted for.

There are at least six major types of policies available. Some have a participating clause where the insurance company shares excess profits with the policy holder, others have non-participating clauses where the premiums vary from year to year but never exceed the initial agreed upon amount.

Other policies permit the payment of the entire amount in a single premium payment and others called “Limited Pay” have the policy payment set at a limited number of years. Thereafter the policy is still in effect and the death benefits will be paid, but no further premiums are due.

The term affordable whole life insurance of course depends on the needs of the insured individual as well as what is offered by the insuring company. In general it is advisable to read the fine print and be aware of any limitations in payment (such as some companies reduce payment in the first year or two of the policy) as well as any rate changes (often in your favor) that can occur as with Participating Whole Life Insurance.

How Much Will It Cost?

The cost of affordable whole life insurance will depend on the type you select. The Limited Payment variety will require higher payments for a shorter time. Participating or Economic policy premiums may vary in payment amounts with the profit of the insurance company and the economic situation in general but in general will continue throughout the insured person’s entire life.

Reputable Major Providers

Finding an affordable insurance product can be complicated or relatively simple, depending on the method chosen. Research is important to understand the various types of whole life insurance being offered by companies and if they are affordable or not. Doing your own research on every major company will likely be more accurate, but it can take weeks.

Using an online tool such as ePolicyLife can ease some of the research involved in determining premiums. Many insurance websites offer an online tool that will give an instant quote with only a few clicks of the mouse and supplying some very basic information.