Billie J. Minton Insurance Agency, LLC
An Independent Franchise 

Tel: 423-723-2244    Fax: 423-378-6333


Whole Life Insurance

Whole Life Insurance – “Insurance that provides death protection for the insured’s entire lifetime.”

When you become familiar with a whole life insurance definition, you will see why it is a popular form of insurance.  Unless you or your situation falls into a few specific categories, whole life is almost always preferable.

The first important benefit to a whole life policy is locked-in monthly premiums.  While other forms of insurance can increase premiums as the policyholder ages, you will continue to pay the same amount throughout the duration of your policy.  As long as you make your payments on time, the amount will never be increased.  While this is very useful for anyone who wishes to keep his finances organized, knowing that getting older, the cost of living, and other factors will not cause your premiums to increase makes this financial obligation an easy one.  Even if you have a policy for thirty years or more, your monthly payments will stay the same.

While aging affects other policies, costs of living and changes in one’s health or medical status often do, also.  None of these factors will affect this preferable form of policy.  For example, if you develop a serious medical condition, you cannot lose your policy nor have the worry about increased rates.  Everything about it will remain the same as the day you bought it.

A second benefit specific to whole life is the asset it provides.  Unlike policies which only provide benefits upon the policyholder’s death, or those which allow benefits in extreme circumstances, this type of policy builds up a cash reserve for you.  Depending upon the terms of the insurance company you are dealing with, it is usually one or two years after you have purchased a policy that this comes into effect.  Cash reserves for whole policies means that you have the option of either cashing in the entire policy for what it is currently worth, or borrowing against the policy which stays active.  If you experience a financial crisis, want to help your child with the cost of college, or any other immediate financial need, your policy can do this for you.

In addition to increasing payments, some other policies decrease benefits.  A whole policy does not do this, either.  The amount of benefits you select when you first purchase it is the amount your beneficiary will receive, unless you yourself change the terms.  As funerals and related expenses become more expensive every year, this feature will give you peace of mind.  Your beneficiaries will not have an undue financial burden when you select the amount of benefits you feel is appropriate.

When you look at all of these factors together, it is easy to see why this is usually the best choice.  Unless you are absolutely certain that you will only need the policy for a short period of time, or if you truly have a minimal amount of income to devote to regular payments, there is no other policy that offers so much.  It is clearly the easiest, surest, and most cost-effective way to begin your financial planning.

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