A whole life insurance policy provides lifetime coverage and has a cash savings component. Sounds good, but is this option right for you? Ask yourself these questions before purchasing a policy.
1. What Is a Whole a Life Insurance Policy?
A whole life insurance policy is insurance that lasts your whole—or entire—life if you pay the policy premiums. It is a type of permanent life insurance. The policy has a guaranteed death benefit, and it accumulates cash value at a rate that your insurer determines.
2. Is Whole Life Insurance Right for Me?
Whole life insurance might be right for you in these situations:
- You need coverage that lasts the rest of your life.
- You can benefit from tax-deferred benefits of cash accumulation, which build over time.
- You can afford to pay higher premiums.
3. How Much Insurance Do I Need?
The amount of insurance you need depends on how much income you need to replace, the number of dependents you have, and what expenses your dependents will incur if you are no longer living.
Factors to include in your calculation:
- Education for children
- Expenses, including debt and funeral expenses
4. How Much Insurance Can I Afford?
Although it is ideal to purchase enough insurance to replace your income and care for your loved ones for several years, other factors may prevent you from doing so.
What to consider:
- Your budget may limit the amount of insurance you can afford.
- Still, life insurance is protection for your family.
- Without buying a policy with premiums that you cannot afford, consider your essential expenses and whether limiting your spending on hobbies, recreation, or other activities can help you cover end-of-life expenses for your family.
- Whole life insurance premiums are higher than term life insurance premiums.
5. How Does Term Life Insurance Compare?
Term life insurance differs from whole life insurance in several ways:
- It provides coverage for a term, or limited period—usually between 10 to 30 years.
- It does not include a cash savings feature.
- It is less expensive than whole life insurance.
For more information on the differences between term life and whole life insurance, read our page, Term Life vs. Whole Life Insurance – How to Decide.
Hunt Life Insurance of Raleigh, NC offers hassle-free quotes and advice to help you choose an insurance policy that is right for you, your family, and your budget. Call or text us or complete our contact form for more information.
A term life insurance quote is an estimate of the monthly cost of a term life insurance policy. The quote is based on your age, health history, lifestyle, and amount of coverage you want.
Need a Quote for Term Life Insurance?
Please speak with us at Hunt Insurance of Raleigh, NC. You’ll receive personalized service from John Hunt, a licensed insurance agent for the state of North Carolina. Of course, you can fill in the blanks and get an online quote. But for customized service that saves you time, you might want to speak with an insurance agent anyway. We offer hassle-free quotes.
Information Needed for a Term Life Insurance Quote
Below is the information you need for a term life insurance quote with Hunt Insurance of Raleigh. But before you begin, read our blog post, How Much Life Insurance Do I Need?
- Your zip code
- Date of birth
- Tobacco use within the past five years
- Medical and prescription history
- Have your parent or siblings been diagnosed before age 70 with any of these diseases: cancer, diabetes, cardiovascular, kidney disease
- Are you a U.S. resident?
- Do you have a spouse or a domestic partner?
- Is this your first time buying term life insurance? Or are you purchasing additional insurance or replacing an existing policy?
- When would you like coverage to begin?
- What’s the amount of coverage you want?
- How long do you want coverage to last?
Why Speak with John Hunt for a Term Life Insurance Quote?
An online term life insurance quote is an estimate of the monthly cost. But a representative will still contact you for more information about your health history and lifestyle.
You’ll benefit from John Hunt’s service in several ways:
- He has more than a decade of experience in the insurance business.
- His insight helps him tailor the conversation with questions and explanations you need to make an informed decision. An online estimate tool can’t do that.
- He’ll thoroughly answer your questions and give you guidance to avoid over- or under-insuring yourself with term life insurance.
- You can text, call, or e-mail him.
Even if you complete an online form, you’ll ultimately need to speak with an agent to get clear answers to your questions and to provide additional information. If you schedule a free consultation with John Hunt, he’ll answer all your questions and gather information from you upfront to give you a term life insurance quote that considers your budget and needs.
Hunt Life Insurance is a local agency available to Raleigh, Durham, Cary, Morrisville, Garner, Clayton, Chapel Hill, and beyond.