If you are looking for a life insurance product that will protect you for your entire life, a whole life policy is your best choice. This type of policy may be more expensive than other alternatives, but there are investment and cash value advantages as well. There is also a wide range of products available to you in various price ranges so you should be able to find something to fit your budget.
Whatever product you choose, make sure that you can afford it for the long haul. Your premiums build a cash value over time as long as you are able to continue regular payments. There are a few basic types of whole life policies so it is important to familiarize yourself with the details of each type.
Ordinary Whole Life Policy
This is the most basic form of whole life insurance and it is quite simple. The amount you pay for premium will never change for your entire life, and a cash value will build from your premium payments which is invested and which can yield a return. With this type of policy, the insurer may even pay dividends to you during profitable periods.
Variable Whole Life Policy
If you are comfortable relying on an element of investment risk for your life insurance needs, a variable life insurance policy may be right for you. You can invest your premiums into different types of assets, and if these investments become profitable, your premium can be paid from those profits. Investment options include stocks, bonds or other fixed accounts. You may find that this is one of the more expensive options but there can also be tax benefits to a variable life insurance policy.
Universal Whole Life Policy
A third option to consider is a universal whole life insurance policy. This type of policy differs from the previously mentioned policies because the amount of premium you pay can change, and you can tailor this type of policy to your needs as your life situation changes. The amount of the death benefit, the amount you invest and the amount that is saved in a cash value component can be changed as needed. This is one of the most flexible life insurance policies available.
Life insurance products can be complicated but if you discuss your needs with a qualified insurance professional you will not only gain a better understanding of the products offered but you will also obtain valuable guidance regarding the best approach for you and your family.