subject: Finding Whole Life Insurance Quotes [print this page] Finding Whole Life Insurance Quotes Finding Whole Life Insurance Quotes
So why should one even consider a whole life insurance quote? Why should one have it in their financial portfolio? What is its significance and how does the policy work for you? These and more questions have been bothering manyindividualsthey are wondering ifit is worth their hard-earned money to invest in a good whole life insurance policy. As the phrase implies, whole life insurance has no other hidden meanings but it is exactly what the name it expresses. For as long as the insurance premium is being paid, the company will protect the policy owner for the rest of his/her life. So is it really that necessary to include it in one's financial portfolio? Most people would say that it is necessary to invest money in this type of insurance. This insuranceactually takes care of your family even after your death. The death benefit that would be claimed is free of tax and is given to the beneficiaries of the policy holder. Just like any other life insurance, the best time to purchase a whole life insurance is at a young age because premiums are naturally more affordable and lower. It is also to their advantage that the premiums will not increase even if there are changes in the health of the person. Normally, other types oflife insurance would require thorough medical exams or annual exams for the succeeding years so as to gauge whether premiums should be increased often times this depends on how healthy you are. So how does it exactly work? Let us say for example an individual tries to get a whole life insurance quote and decides to purchase at the age of 30 years old. At this point, the underwriter will study and look at the applicant's risk pool (lifestyle habits - work, health, family, sports activities) to determine the life expectancy. Assuming that the result of the study returned "80 years" as the life expectancy, the next step is to calculate exactly how much the premium or the amount which the soon-to-be policy holder must pay them. This will then be the basis for the creation of the cash value or amount ofcoverage he will purchase. Say that the individual opted to purchase a 40k worth of coverage under the Whole Life Insurance. The following would be an estimated computation : a. Compute for the premium cash value age by subtracting the life expectancy to the purchase age, as seen below: Life Expectancy 80 years Purchase Age 30 years old Premium Cash Value Age 50 years The premium cash value age simply means that the individual will have to pay premiums for this long in order to equal the worth of policy purchased.
b. Compute the premium payment pay year by dividing the cash value purchased to the premium cash value age, as seen below: Cash Value $40,000.00 Premium Cash Value Age 50 years Premium Payment per year $800.00 The computation above simply states that the individual, at the age of 30 years old, who decided to purchase a Whole Life Insurance (with a policy worth $40,000) have to pay the $800.00 premium cost annually for 50 years. The internet has made shopping for life insurance very easy these days. Within minutes you can have top quotes from all the major insurance providers. Dont leave your family with a huge financial burden protect your family with a good life insurance policy.
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