Question 1

Is whole life insurance a bad idea?

Accepted Answer

Whole life insurance can be a bad idea for those who do not need lifelong coverage and have other insurance options in place, such as their retirement funds and pensions.

Question 2

What happens to term life insurance at the end of the term?

Accepted Answer

The term life insurance can be renewed or converted to a permanent life insurance policy at the end of the term. You should figure out what option works best for you. However, keep in mind that the renewal costs can be higher because of your current age.

Question 3

Should I convert my term life policy to whole life?

Accepted Answer

Are you looking for ways to diversify your investments? Can you afford to pay high monthly premiums? If your answer is yes, then converting to a whole life insurance policy is an excellent option for you. You will obtain lifetime coverage and financial protection and won’t have to worry about frequent increases in the premiums.

Question 4

Should I buy term or whole life insurance if I have a special needs child?

Accepted Answer

With a special needs child, whole life insurance is the best option for you, as you’ll be able to benefit from the claims and spend them on your child’s health and safety. Whole life insurance policies can also be customized or bundled to ensure that you have access to medical coverage in case your child’s condition deteriorates.

Question 5

What is a death benefit?

Accepted Answer

A death benefit is a payout that a beneficiary receives upon the death of the policyholder. The sum varies and can range anywhere from $10,000 to $65 million. The following factors influence the amount of the death benefit: Type of insurance policy The level of coverage The profile of the policyholder The circumstances of policyholder’s death

Question 6

What is cash value?

Accepted Answer

Cash value is the additional profit that life insurance policyholders receive on their paid premiums once they cancel the policy and withdraw their investments.

Question 7

Is whole or term life insurance more expensive?

Accepted Answer

Whole life insurance is more pricey than term insurance because it provides lifetime coverage to the policyholders. Note that term life insurance premiums are subjected to increase with passing years. The older you become, the higher your monthly premiums will be. However, that’s not the case with whole life insurance since the premiums are fixed.

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