Many people report that having whole life insurance explained to them by an insurance salesman results in just this experience. Read this article and understand – without wading through tons of technical terms in the process!

Defined simply, whole life insurance policies offer lifelong coverage to the policyholder. These policies provide designated recipients, such as spouses or children, with a set amount of money in the event of the holder’s death. If the purchaser lives to be 100 years of age, he or she will receive the money instead.

Whole life insurance policy owners pay a set amount of money each year to keep the policy in force. This amount, or premium, never increases. The cost remains the same even if a person gets old or becomes terminally ill.

Premiums for these policies are higher than those for term life insurance. If a person is young and healthy, this additional cost may seem a waste of money. Indeed, someone who purchases a 20-year term policy at age 20 would pay little for term life insurance, but would pay a significantly higher premium for a whole life policy.

As a person ages, however, or becomes ill, term life premiums can skyrocket and quickly become unaffordable. In contrast, most whole life policies offer guaranteed premiums. This means that the cost of a person’s whole life premiums will never increase.

The actual value of a whole life insurance policy is the amount of coverage elected by the purchaser. If the person dies or turns 100, the total amount of the policy will be paid to the appropriate person. There are other circumstances, however, under which a person may receive a percentage of the policy value.

Whole life insurance is an investment, and policyholders can borrow against or cash in their policies. If they choose to do this, they receive only the current cash value of the policy. They are not reimbursed for the percentage of the premiums that paid commission fees and investment costs.

Many people, rather than asking to have whole life insurance explained to them, opt instead to purchase less expensive term insurance. Now that you understand more about it, you can ask questions from your insurance agent and make a more informed decision. This will help you to make the best possible decisions in safeguarding your family’s future.

Final Expense
Final Expense works exactly the same as Whole Life Policies, but they are just smaller amounts. Most Companies only offer up to $35,000 for a policy. They are designed to pay for all of your expenses when you die. An average funeral will cost around $8,000, and that is not counting all the bills you will have accunulated before your death. (hospital bills, nursing home, hospice, etc...)

Final Expense is  very reasonably priced and some Companies have very little underwritting involved. Most of the time as long as you can answer a few questions you will be issued a policy without the need of an exam or blood work. This is an alternative to someone who has a very tight budget and wants to make sure that their death doesn't cause a burden on their loved ones.

Enjoy,