You are an individual who wants to provide life insurance protection for your family no matter when you may die. And you may also be someone who wants to get a little bit more with their life insurance policy, because of this you decided to look up life insurance quotes for a whole life insurance policy. And in this article, we will actually provide some million-dollar whole life insurance policy quotes and at the same time break down what makes a whole life policy good and bad, plus recommend some alternatives.
What is a whole life insurance policy?
It is a form of a permanent life insurance policy that is designed to cover you for a lifetime while also building up some savings. A whole life insurance policy monthly payment is broken down into paying for a Term Policy while the rest is going to a cash value account where your money can grow. Whole Life policies gained their popularity because they offer lots of guarantees. Your premiums, your death benefit, and your cash value all have guarantees on them.
The cash value of a whole life policy grows based on the interest rate procured from the investments within the cash value account. Whole life insurance policies investments are usually tied to bonds. This is a primary way of how a whole life policy makes money but there can be another way as well. You see, a Whole Life policy can be purchased through either a stock company or a mutual company. In a stock company, shareholders get the returns of profits and not the policyholders. Now in a mutual company, the policyholders are shareholders which means in addition to your cash value growth you will also enjoy some dividend payouts. In a nutshell, if you are going with a whole life policy you should always go with a mutual company.
Whole Life insurance Quotes for $1 million
Now that you have a pretty good idea of what a whole life policy entails let’s look at some life insurance quotes for different age groups.
Age 30 Male: $839.30/mo Female: $729.94/mo
Age 40 Male: $1273.30/mo Female: $1081.68/mo
Age 50 Male: $1959.30/mo Female: $1681.05/mo
Age 60 Male: $3158.05/mo Female: $2756.43/mo
Age 70 Male: $5664.93/mo Female: $4952.68/mo
Personally, I think you’re better off getting a different kind of life insurance policy. If you’re looking for investment return you really are better off getting a term policy and investing the rest since it will be a better return. If you’re looking for a lifetime protection nothing beats a Guaranteed Universal Life Plan and to prove you can run quotes here for same age groups and see what you can get.
As you can tell, whole life is a very overrated and overpriced life insurance policy and there are better alternatives. Now, you may be thinking that it’s in our best interest to say this but it is actually quite the opposite. Being an independent insurance agency we would make way more money selling our client’s whole life insurance than any other product that we offer. In some cases two to six times more. So no there is no agenda here but simply a reputable agency looking out for your best interest.
When does whole life insurance policy make sense?
Although, I don’t like whole life insurance there are some occasions where you may be okay getting one. Let’s start with final expense plans fist, you see most funeral expense plans are small whole life policies and that’s quite normal since you’ll be able to secure a policy to cover your burial for a small monthly sum. Also, if you’re a risk-averse individual who maximized other tax benefiting investments like Roth IRA or 401k and are now looking to use life insurance to get tax-deferred growth a whole life may work. In this case, you should purchase a whole life policy from a mutual company since you’ll at least get higher returns. Most whole life policies don’t really accumulate much when purchased from stock companies.
When doesn’t it make sense to get a whole life?
Most of the time it doesn’t make sense because of its cost, small returns and lack of flexibility. As you have seen so far whole life insurance policy are very expensive and most of the time they get canceled since people have a hard time sustaining paying those premiums. It is also hard to go with this option when there are better-priced alternatives. If you ever want to cancel this policy you’ll also run into surrender charges, which are basically fees that the insurer charges for managing and maintaining your policy. From my personal experience, I don’t think I ever spoke to anyone who was happy with their whole life insurance policy. Besides that, I never recommend life insurance as an investment and for lifetime coverage a guaranteed universal life offers better pricing and simplicity.
In a nutshell
If you read the whole article you’ll now have a good idea of how much whole life insurance policy costs and whether or not you should go with it. Although, we may seem to come off discouraging towards whole life there are situations where it may work for you. However, in most cases, a whole life quote can get beaten out by other alternative coverage options. The best part is we are a truly independent source of life insurance information and policies so if you’d like to secure a policy call us at 888.492.1967 or request an application on one of our quoters.
