Whole Life Insurance Frequently Asked Questions

There are varieties of life insurance products available to meet consumer needs. One type is whole life insurance, which is essentially life insurance for the duration of a person’s life, as long as the policy premiums are kept current. Obtaining accurate quotes for whole life insurance is simple. Unfortunately, however, the application process can be a little time consuming, but well worth the effort.

Why Whole Life Insurance

There are various life insurance policies available to people based upon their personal needs. Whole life insurance is a policy that provides coverage for a person’s entire life. This means that as long as they have the policy they do not have to worry about passing medical exams or re-applying for the plan because it is maintained for life. In addition, whole life insurance accumulates a cash value, which is the amount that would be refunded to the policy owner if the policy were canceled. The cash value is the amount paid beyond the premium that accumulates like a savings account.

How to Get Quotes for Whole Life Insurance

Obtaining quotes for whole life insurance is as simple as finding a life insurance broker and letting them know that you would like a quote. In addition, consumers can contact life insurance companies and request quotes directly. For the most part, the majority of insurance companies have rates posted on their websites as well. There are a series of questions to ask that help determine the most accurate rates. Consumers will most likely need to provide their zip code, birth date and answer questions relating to tobacco use. Additionally, knowing current height and weight can be beneficial for the most accurate quotes.

What Impacts Whole Life Insurance Rates

Whole life insurance premium rates are impacted by location, or more specifically, where the applicant lives. In addition, age is a factor that affects premiums. There are typically three ratings or categories that applicants are evaluated for: preferred plus, preferred and standard. Preferred plus is very hard to obtain and as a result, has the most advantageous rates. Preferred is the next step away and a little more expensive than preferred plus. Finally, standard is the most costly option. These ratings are based on several factors including height, weight and current health status.

How to Apply for a Whole Life Policy

When a consumer decides to purchase a whole life policy, they must first apply for the plan. In most cases, there is some extensive paperwork involved. Fortunately, life insurance brokers can aid in the completion of the paperwork. Alternatively, if they prefer, consumers can fill out the required paperwork on their own. Once the application is submitted, an underwriter evaluates the information. In some case, a paramedical exam is ordered, depending on the plan. Finally, once the results are recorded, if the underwriter approves the plan, the applicant is notified and policy is placed in force.

Determining the best life insurance product for any consumer requires knowledge about what each product offers. Unfortunately, whole life insurance can be expensive, however, as the name suggests, it provides coverage for an insured person’s entire life. In addition, a cash value is accumulated and returned if the policy is canceled. Further, it can be borrowed and applied to payments on the policy.

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