For Life Insurance Awareness Month 2015, this three-part blog series will provide basic information on the different types of life insurance and help you determine which kind is best for you. When choosing between the different types of life insurance, always make sure that you are purchasing enough for you, your family, and your future.
#2. Whole Life InsuranceWhole life is a type of permanent coverage life insurance, which means it's a good long-term plan that will accumulate cash value.
- It's the perfect plan to purchase for a child. The younger the individual is at the time of the purchase, the cheaper the premium will be, and this price is guaranteed to be locked-in for life.
- It's ideal for someone who wants lifelong coverage.
- Cash value begins to accumulate after a few years. You can borrow from this cash value, but be sure to pay back the loan to avoid interest rates which decrease the value of the policy.
- Catholic Financial Life offers three ways to purchase it:
1. Buy whole life insurance as a standard policy and pay premiums every year for life.
2. The 20 pay policy allows you to complete premium payments after 20 years.
3. Pay in one single premium, and the policy will be completely paid for right away.
Coming up next week: #3. Universal Life Insurance
Did you miss our first post of the series? Check out #1. Term Life Insurance.