Single Premium Whole Life
Reader’s Question:
I’ve been reading a lot about life insurance because I want to make sure I’ll be choosing the best insurance policy for myself and my family. My uncle Ted told me that he has just purchased a single premium whole life insurance policy, is this a plan I should consider? I admit that life insurance is quite difficult to understand because it has too many terms that I’m not so familiar with.
Lily
Trenton, NJ
Sure Lily. One of the common myths about getting life insurance is that people think they are “too young” to purchase a policy. I might caution you that a Single Premium Whole Life is mainly purchased by people over 65 who have a nest egg they want to protect and continue to earn money. This is a quality investment because not only are you building a cash value, you can tap into it or borrow from it in case of an emergency. These funds are protected against a financial disaster as well.
It is important that you buy life insurance
You never want to be caught without life insurance as there is always the chance of your demise. Also your reason for getting life insurance is because you are preparing for what might be the worst case scenario. The good thing about buying term life insurance while you’re young is that you get it at a lower price while providing security for the people you love.
A myth some people believe is that they do not need life insurance because their children are self-supporting and their mortgage is paid off. That might be a valid reason, but have you ever wondered how your husband will survive and manage his daily life without you? What if he outlives you for 10 years or even 20 years, what will happen to him?
Lastly, another myth people believe is that since they are getting life insurance from their work, they do not need to get additional life insurance coverage. The truth is that your life insurance coverage from your work may not protect you and your family completely. Review the insurance coverage that you have to see whether you are getting enough for you and your beneficiaries. Aside from that, if you leave your job or you retire, your life insurance coverage will most probably terminate, therefore buying another life insurance policy is still advisable.
Category: Reader Questions
