Best Whole Life Insurance San Antonio

Reader’s Question:

I want to get the best whole life insurance deal in San Antonio. What are the different types of whole life insurance?

John

San Antonio Texas

 

Life insurance usually falls into two categories. One is the term life insurance which provides the beneficiaries with death benefits, usually in form of cash, upon the insured person’s death. The other type is permanent life insurance. The permanent insurance provides death benefits, plus, on top of that, it has a savings element that builds cash value which the insured person can take advantage of while he is alive. Since permanent insurance has an added feature, it comes more expensive than term insurance.

Whole life insurance falls under the permanent insurance category. That’s why it is important that you will get the best whole life insurance as it involves quite a big amount of money from you. Following are the variations of plans. This can give you basis which is the best whole life insurance plan that fits you.

1. Non-Participating. In this type of whole life insurance, the premium amount you will be paying for the rest of your life will be determined only once at the time your policy is issued. This does not pay dividends.

2. Participating is also called with-profits policy. This pays dividends to the insured person.

3. Level Premium or Economic is like a combination of term plan and participating insurance plan. The policy holder will be paying premium payments that are level throughout his lifetime. The excess of the premium or the dividends will be invested by the insurer to generate the cash value of the policy.

4. Limited Pay is similar to participating plan but it will only require you to pay premium for a number of years for your whole life coverage plan. You can get a ‘20-Pay life’ insurance – you pay premiums for 20 years. Another variation is ‘Life Paid at 60′ which means you end paying premiums when you reach 60 years old. The shorter the payment period means the higher the premium is and vice versa.

5. Single Premium is similar to limited pay plan but you will only pay policy premium one time. But of course this could mean shelling out a big amount of money.

6. Indeterminate Premium is akin to whole insurance plan except that premium will vary in coming years. The advantage is that premiums may lower over time, but it can also be the opposite.

Now assess what are your life insurance needs and investment needs. Then decide which among the whole plans, you think, is the best whole life insurance plan for you.

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