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About Whole Life Insurance

Guest post by: John Clark

Article Overview: One in three Americans has no life insurance at all, translating into a staggering 30% of U.S. citizens who have no indemnity to protect their loved ones. This is the lowest rate of uninsured Americans in well over 50 years. Of the 35 million American families who are currently living without life insurance, 11 million contain young children under the age of 18. People are struggling financially, living paycheck to paycheck and forsaking the benefits and stability of life insurance. This is leaving many families one accident or illness away from financial devastation.

About Whole Life Insurance

One in three Americans has no life insurance at all, translating into a staggering 30% of U.S. citizens who have no indemnity to protect their loved ones. This is the lowest rate of uninsured Americans in well over 50 years. Of the 35 million American families who are currently living without life insurance, 11 million contain young children under the age of 18. People are struggling financially, living paycheck to paycheck and forsaking the benefits and stability of life insurance. This is leaving many families one accident or illness away from financial devastation. According to recent surveys, 58% of Americans think they need more life insurance. 40% of these families believe they would have difficulty paying their current living expenses if the family principle source of income passed away. Additionally, 30% believe that it would be arduous to come up with enough money to pay the bills after a couple months if the prime wage earner died.

Whole-life insurance is a fantastic option for many families. Also known as permanent life insurance, whole-life insurance offers protection from the moment of purchase to the day you die. This form of life insurance is so advantageous because it uses investments in money markets, stocks and/or bonds, building cash value that members can borrow against. There are three common types of whole-life insurance: Traditional, universal and variable.

• Traditional - This type of life insurance gives the member a established, definite amount of benefits to bestow upon his or her beneficiaries regardless of how he or she lives, as long as the life insurance contract is sustained. Even still, many of these policies offer a withdrawal section that allows the member to cancel coverage and collect a surrender value.

• Universal -This form of life insurance is formed where the percentage payments greater than the charge of indemnity are credited to the cash worth. This cash worth is credited each month with interest and the policy itself is debited by a cost of insurance charge. The actual interest credited to the account is determined by the insurance company.

• Variable - This policy allows the holder to have permanent protection to the beneficiary upon death and allows the member to apportion a segment of the premium dollars to a detached account consisting of a variety of investment opportunities within the insurance company.

One of the most difficult aspects of obtaining whole-life insurance is knowing how much insurance coverage is enough. The most favorable time to invest in whole-life insurance is if there are children involved. When looking into how much whole-life insurance to purchase, a wise rule of thumb is to invest in five to 10 times your yearly earnings. Additionally, understand that an insurance policy is directly representative of the company that supports it. Be diligent in checking to an insurance company's financial rating before getting involved with a particular assurance corporation.

The benefits of whole life insurance are that a piece of the premium money goes directly toward the cash worth, which could pay off the entire insurance policy in a matter of years. Additionally, the premium will remain constant through the duration of coverage time, unless otherwise stipulated. The tax savings associated with whole life insurance are also an advantage. The benefits and protection allowances make whole life insurance a valuable asset that, in most cases, all but pays for itself.

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Article Tags: american families, citizens, financial devastation, indemnity, insurance, living paycheck to paycheck, paycheck to paycheck, uninsured americans, whole life insurance
Referred by: http://www.franchisefix.com/



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