When you’re looking for life insurance, you may not know what sort of policy to buy. Should you choose a whole life policy or a term life policy? Many consumers don’t even know what whole life coverage is. Even more might believe that term life is the only product on the market.
Use these three tips to purchase the best life insurance coverage for your family.
Use Whole Life Insurance to Invest in the Future
Whole life insurance gains cash value over time. This means that it is not a static policy. But, if it’s going to grow in cash value, why not pay more into it? You will get the minimal uptick in value if you just let the policy sit there.
However, consider how much more value the policy could develop if you were paying twice, thrice, four, or even five times your premium into the policy each year.
Plus, whole life policies are flexible because you can, generally:
- Withdraw when needed
- Take out loans against the policy
- Use it to build a retirement income
- Maintain a death benefit
- Name any beneficiaries you please
Stack Term Life Policies
If you stack life insurance policies, you can add value to your financial portfolio in the event that you pass away. This means that you likely have several policies that all expire one year after another.
When a policy expires, simply purchase a new one and keep the policies stacked. Because term life coverage is cheaper on the whole, it’s easier to maintain these policies and still leave your family quite a lot of money if you pass away suddenly.
Buy Both Whole and Term Life Coverage
Buying both whole and term life can also help. On the one hand, you have a policy that is intended to increase its cash value and that you pay quite a lot of money for. On the other hand, you have a term life policy that is cheap and still has some value when you pass away.
Diversifying your life insurance coverage makes it easier to protect your family. Plus, this means that you get the benefits of both policies throughout your life: surety and flexibility.
Contact The Budde Agency for More Information on Life Insurance Coverage
Reach out to us at The Budde Agency when you require assistance with life insurance protection. Our team is happy to help you look into all the different options you have, build a financial plan that works for you, and ensure that your family enjoys the financial security they deserve.