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When Do You Need Whole Life Insurance?

by Scott G on March 11, 2013 · 3 comments

When Do You Need Whole Life Insurance?

When Do You Need Whole Life Insurance?

 Guest Post Contributed By Lauren Cohen

When you are shopping for life insurance, one of the first questions you will need to ask yourself is whether you should buy whole life insurance or term insurance. While both policies provide coverage in the event that you pass away, each product satisfies different needs, and understanding who might be the right candidate for a permanent plan like whole life is important before you start to request quotes and compare premiums.

What is Whole Life?

Whole life is technically an insurance policy with an investment component built in. A portion of the premiums will go towards paying for the insurance, and the other portion will go towards a cash account that will accumulate and earn interest. While whole life insurance is more expensive than term, it has become a popular choice for individuals who want to buy life insurance and also save for the future in one financial vehicle that comes with guarantees.

Are You a Good Candidate For Whole Life?

You have to consider your needs and your budget whenever you are shopping for any type of life insurance. While whole life is a great product for the right person, it does have its drawbacks for people who are applying for insurance on a limited budget. If you are looking to protect yourself until the kids are out of the house or until your mortgage is paid off, you might be better suited buying a temporary term life plan.

If, on the other hand, you want to buy a policy that will remain in force for the rest of your life, whole life is the way to go. Unlike term insurance, which will expire after a specified number of years, whole life will remain in force until you pass away or reach 100, where the policy will pay out.

Your whole life premiums are based on your age at the time of application, and you never have to worry about failing to qualify for life insurance once your term is up. If medical problems run in the family, it is best to get a permanent policy while you are healthy. You may even be able to find a policy that comes with a special rider that will allow you to raise your death benefit at specified anniversaries without medically qualifying for the increase.

If you are interested in buying whole life but you are limited with your budget, it is best to buy term insurance to hold you over and then convert the term plan to a permanent plan when you can afford to do. Regardless of which type of cover you think is best, it is imperative to buy insurance as soon as possible to prepare for the unexpected. Enter your information into advanced quoting engine available through Mozdex.com, and see how much you may spend for whole life or term life coverage from all of the top insurers in the industry.


Lauren Cohen is a life insurance professional who has been helping families across the United States protect their family’s future for 7 years. The start of her career was when she joined an insurance brokerage firm with over 30 years experience. There she worked with experts in estate and family planning. She prides herself on getting to know her clients and designing the right plans that fits their individual needs. Lauren’s focus continues to be on the side of life insurance and frequently writes on the topic. You can find more articles written by Lauren at Mozdex.com

Photo: zoe.wang

Robert J Hardy March 11, 2013 at 11:16 pm

I found this article very helpful regarding the whole life insurance and its facts; Whole life insurance is a great investment. Whole life insurance policy covers you for your entire life, not just for a specific period such as term insurance. You can also choose how often you’d like to make premium payments like monthly, quarterly, semiannually or annually.

life insurance June 23, 2013 at 7:22 am

This article is very helpful to new life insurance policy holder. From my point of view hole life insurance policy is a great investment to everyone because this policy covers for your entire life cycle not for specific time period. Best you choose best for your among lost of alternatives.

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