A whole life insurance policy can give you and your family financial peace of mind. Contact Encore Insurance Group today for a quote!
If you’re an older adult, purchasing life insurance now can ensure that your beneficiaries will have the necessary coverage to pay for your medical expenses, funeral costs, and remaining debt balances after you die. However, if you’re like many people, you may feel overwhelmed by life insurance choices.
At Encore Insurance Group, we can help you understand whole life insurance and determine whether this policy type is right for you. We’ll help you feel confident in your life insurance coverage as you choose a policy that provides the most benefits for your family.
What Is Whole Life Insurance?
Whole life insurance is a type of permanent life insurance that guarantees coverage after your death. In contrast to term life coverage, which only lasts for a specified period, whole life insurance lasts for your entire lifetime.
When you die, your whole life insurance coverage will provide a death benefit to your beneficiaries as long as you paid the necessary premiums each year of your policy. This benefit can help cover your funeral expenses, medical bills, debts, and other associated costs after your death.
Whole life insurance also comes with a savings component. Every time you make a premium payment on your whole life insurance policy, a portion of this payment will go towards the policy’s “cash value.” Depending on your policy, you may be able to withdraw the cash value before your death, borrow funds against it, or invest it.
Types of Whole Life Insurance in Michigan
Insurance companies can offer numerous types of whole life insurance with varying benefits and requirements. Here are a few of the most popular types:
Typical Whole Life Insurance
Typical whole life insurance follows the premiums and benefits we stated above. In this policy type, your premium will stay fixed throughout your lifetime. Additionally, every premium payment you make will accumulate cash value.
Limited Payment Whole Life Insurance
Limited payment life insurance allows you to frontload your premium payments by making larger payments for a specified amount of time, such as 10 or 20 years. After you pay off your policy, your coverage will remain until you die.
Modified Premium Whole Life Insurance
Instead of charging a fixed premium, modified premium policies enable you to pay lower premiums during the first years of your life insurance policy, then increase your payments as you age. If you believe you will be able to pay higher premiums down the line, you may benefit from this policy type.
Who Should Purchase Whole Life Insurance in Michigan?
Our customers often wonder whether they should purchase whole life insurance or term life insurance. Here are a few types of people who may find whole life insurance more beneficial:
- People who want to take advantage of the cash value: Term life insurance policies do not provide a savings component. If you’re looking for a policy that rewards you in the long run, a whole life insurance policy may be your best option.
- People who want guaranteed security: Whole life insurance provides guaranteed benefits, no matter when you die. This coverage can give you peace of mind that your policy will be effective after your death.
Determining whether to purchase term or whole life insurance can be tricky. However, our insurance experts can help you break down the pros and cons of each policy type and determine the right options for your needs. We can then quote you with several life insurance companies to find the best whole life insurance policy for you.
If you’re a Michigan resident, be sure to contact our team at Encore Insurance at 248-466-0200 today to request your whole life insurance quotes.