Term vs. Whole Life Insurance – Which Is Best For You?
If you are looking into purchasing life insurance from a life insurance agent in Richmond VA, you have probably heard about both term life insurance and whole life insurance. Before you decide on one or the other based on what you have heard or what your life insurance agent in Richmond VA tells you, you need to understand the meanings of term and whole, and familiarize yourself pros and cons of each one (and how these pros and cons will affect you).
First, we have term life insurance. It covers its policyholders for a certain amount of time, and that time can be up to 30 years. It costs much less than whole life insurance and policyholders can be covered by level-term premiums and annual renewable premiums. With level-term premiums, the premiums stay the same throughout the duration of the policy, whereas with annual renewable premiums, the premiums increase as the policyholder ages.
Next, we have whole life insurance, which combines term life insurance with an investment component. There are two elements involved with whole life insurancethe mortality charge, which pays for the insurance coverage, and the investment component, which earns interest and claims to act as a savings mechanism. However, as the policyholder ages, the mortality charge increases and the investment component decreases. Plus, the cash surrender value (the amount you would get back if you cashed in your policy) is not always what it appears to be. It fluctuates with markets, making its relation to reality a difficult one.
In the end, if you are on a budget and in search of a good, affordable life insurance policy, term life insurance is probably the best option for you. It is affordable and does not include more coverage that what you actually need. However, if you are wealthy enough to purchase whole life insurance, it can act as an estate-planning vehicle, applying the proceeds to your estate taxes rather than leaving your family to fight in out with the government.
Another problem is that whole life is extremely expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need.
Wealthy people sometimes use whole life policies as an estate-planning vehicle. They can set up an insurance trust, which applies the proceeds of the policy to their estate taxes when they die. That can save their heirs the considerable expense of settling the estate with Uncle Sam.
Ask good life insurance agent in Richmond VA. They should be able to tell you honestly if a term or whole life insurance policy will be best for your future and will be best for you budget.
The insurance industry is constantly evolving. Insurance providers are forever trying to refine the balance between cost and coverage. As competition gets stronger, companies are working harder than ever to bring you the best protection at a price you can afford.
Whether you are searching for accident insurance, annuities, life insurance or niche plans such as guaranteed issue life insurance, you need to be one step ahead of the game if you want to get the most out of your policy. This is where a good life insurance agent in Richmond VA comes in…
Our agents are expert in the field of life insurance in Richmond VA. Did you know that some insurance laws and plan prices differ from state to state? We will help you get the best plan for your money, wherever you happen to live.
No matter what type of insurance you are looking to buy, it is important to us that you get it right first time. This could save you a lot of stress – and possibly lots of money.
Life Insurance Agent in Richmond VA for Millennials and Young Families
As a client, your needs are a priority. We offer several services for millennials and Young Families in Richmond VA and over as well as guaranteed plans for those who have been diagnosed with a pre-existing condition.
Hospital Accident insurance is one of our most popular product categories, and rightly so. If you spend large sums on out of pocket medical expenses you can really benefit from one of these policies as well as enjoying substantial savings.
Life Insurance Agent in Richmond VA for Burial Insurance and Final Expenses
Your family will always come first; you wouldn`t want them to have to bear the financial burden of your last days. No matter what your age, it`s always good to have a plan as to how you intend to cover these costs. Final expense insurance will pay for your funeral service and other associated costs.
Your standard of living is important to you. Should you be taken ill or suffer mobility problems further down the road, we want you to lead the most comfortable life you possibly can. Long term care insurance makes this possible. It also lifts the burden of care from those around you, improving the standard of living for everyone you hold dear.
We know about the benefits and pitfalls of group versus single insurance policies; employer sponsored health plans; term versus whole life and other insurance `gray areas` that customers often wish to better understand. Please don`t hesitate to call us at (804) 551-9526 with your questions, no matter whether you are a valued customer, a potential one, or if you simply need advice.