Things to think over while getting whole life insurance quotes online

Whole life insurance is one of the most popular types of policies available in the US. It is highly affordable and also enables the investor to make minor investments, which get created over the duration of the policy. The premiums are also guaranteed for the entire length of the package and this makes it a worthwhile option for a lot of investors who are on the lookout for a comprehensive insurance product.

Before going to by an insurance product, there are factors all investors need to consider: 

Whole life insurance policies are set for life

Whole life policies come with guaranteed premiums that make it an affordable bet for a lot of investors. There are several policies on the market where the premiums see sharp increases over the years making them redundant and unaffordable to a lot of people.

For instance a life insurance policy bought for a 10 year period could see a 30% increase between the ages of 30 to 40 which is very high.The margin could increase again by around 100% this for ages of 40 to 50. Then another 100 % for ages of 50 to 55 could possibly set the intrest rate at around 250%, which makes it a highly expensive affair even if it were to occur over a 25-year period.

In whole life the policy is set with guaranteed premiums and the investor does not have to worry about rising rates unless if he or she were to go in for a renewal upon expiration of the policy. This makes this type of policy suitable for people living on fixed budgets.

Cash Value or return component on whole life insurance

Term life insurance may be the cheapest form of insurance available in the market. But they do not offer cash value returns to the investor and once the product expires, the policyholder is left with nothing. On the other hand with whole life insurance, the insurer demarcates a cut from the monthly premium to create a minor investor, which accumulates in value every year.

When the investment turns profitable, the investor is entitled to receive a cut.  This will allow the person to withdraw loans against the cash value balance to fund expenses such as mortgage costs or educational fees.

Being sure that whole life insurance is the right choice for you

Whole insurance also has its share of pros and cons. While guaranteed premiums for the entire length of the policy would be seen as a positive aspect by many, there will also be critics who feel that this will limit the earning potential of the investor. When the market is experiencing bullish growth, a more flexible plan will enable the investor to maximize returns on investment.

On the other hand whole life insurance has limited flexibility and may not be ideal for those looking to maximize their returns. Whole life insurance is a great choice for people looking for protection from market force volatility and the phenomenon of rising inflation. The nature of the package allows the investor to make a safe investment for which he or she can also receive cash value upon accumulation.

Finding the right kind of insurance provider

It is crucial to come up with the right kind of insurer to make sure that you have access to the best policy available in the market.  There are several companies that sell half-baked insurance products that are either overly priced or provide poor coverage to the investor. Make sure to conduct a detailed study on different companies before deciding on one. It is preferable to go in for reputed companies that enjoy ratings of A-, A, A+, or A++. Any thing lesser than that may turn out to be a risky proposition.

How to get cheap whole life insurance quotes online

There are millions of pages on the Internet with regards to various insurance products. Study the various types of insurance products on offer before you go looking for quotes. For instance  different types of policies such as term life, whole life, universal life and other insurance products differ vastly from each other in terms of price, coverage, scope and flexibility. Make sure that you are keyed in about which kind of policy you have a preference for and start quote comparison after having determined that.

You can log into to get comparison quotes on whole life insurance products. Once you have filled out the particulars you will get a list of 50 to 60 quotes from several companies that offer whole life insurance.  The questionnaire that you may have to fill may require details about you pertaining to your age, weight, sex, height and overall medical history. If you are a smoker or suffer from obesity you would probably have to pay up to even 50% more than non-smokers or people who do not have weight issues.

It would be a good idea to quit smoking and maintain a certain level of fitness before you apply for a whole life insurance policy.  The questionnaire may also ask for work related data (incase you work in a hazardous environment). Upon completing it you will receive multiple quotes on whole life insurance.

Pick the right policy

Study all the quotes in detail and pick one which you feel is both affordable and offers very good coverage. Often people tend to pick the cheapest policy available in the list without fully checking what it offers.  This could be a bad move as policy might be shoddily drafted and might offer very poor coverage to the investor. Also ensure that the insurer enjoys a good rating in the industry while checking on an interesting quote.

Clarify any doubts with your representative

Once you have picked the one you’re  interested in you would be contacted by the respective insurance agents who would then guide you through the rest of the process. Make sure to get all your queries answered so that you do not have any lingering doubts over what you are buying. This is crucial since you are probably buying a long-term policy and it pays to be totally aware of all the pros and cons that come with it. Also there are several policies that have hidden costs attached to them- clarify with your agent on this regard as well. Once the formalities are done, you should receive your whole life insurance in a matter of few weeks.