Whole Life Insurance Quotes
Before you begin looking for whole life insurance quotes, make certain that this type of life insurance is appropriate for you. This guide will explain how to find whole life insurance quotes, what to look for, and the different types of whole life insurance to think about.
What's the best way to start looking for whole life insurance quotes?
As with any insurance product, it's a good idea to do some preliminary research before comparing individual quotes. Making sure you're educated on the different types of life insurance and the application process will put you ahead of the majority of people. To begin, each individual must determine whether or not they require a life insurance product in the first place.
As a general rule, if any of your loved ones will suffer financial hardship as a result of your death, you should have life insurance. If you don't fall into that category, you might be better off investing the money you would have put into a life insurance policy in another vehicle, such as an annuity. If you want a more in-depth look at life insurance products, you can always consult our "Life Insurance 101" guide.
If you're thinking about getting whole life insurance, make sure that a term life insurance policy wouldn't work just as well.
Term life insurance allows policyholders to obtain a large death benefit for a fraction of the premium price of whole life insurance. Having said that, whole life provides advantages that term life does not. The most notable of these advantages is an investment component that earns money as you pay into the policy over time. This cash balance can eventually be used for a variety of purposes, including taking out loans against the policy.
The next step is to determine how much insurance coverage you require. We recommend that you buy enough life insurance to cover five to eight times your annual salary as a rough estimate. Of course, if you have a young (and growing) family, many experts recommend insuring up to 15 times your annual earnings. These higher insurance coverage amounts, fortunately, can be met relatively cheaply with a term life policy.
Types of whole life insurance to consider
Once you've determined that you A) require life insurance and B) require whole life insurance, you can look into the various types of whole life insurance. You have the following options:
- Participating whole life
- Nonparticipating whole life
- Level premium whole life
- Single premium whole life
There are a few key distinctions between the policy types, and we recommend that you educate yourself on the specifics before obtaining a whole life insurance quote.
- You can, for example, choose policies that pay out periodic dividends based on the insurer's performance. You can also choose whether you want your premium amount to remain constant over the life of the policy, or if you want to pay into your policy all at once.
Final thoughts
Now that you have a better understanding of the life insurance landscape, you can begin comparing whole life insurance quotes. The good news is that you can conduct the majority of your price comparison from the comfort of your own home. We recommend that you use our insurance tool to help you find the best life insurers in your area. You can then request quotes (for free!) from as many insurers as you want.
You should also be aware that the online quotes you receive are unlikely to reflect the exact dollar amount you'll end up paying. On any website, this is the standard procedure. Because so many personal figures are factored into your insurance calculation, you'll only get a rough estimate based on the information you provided online. The insurance company will then send you the final cost of your policy.