Whole life insurance is a powerful financial tool for you and your family. A whole life insurance cost calculator can help you figure out how much insurance you’ll need. A New York Life financial professional can also assist you in finding the right whole life insurance policy for you. Here are a few things to discuss with your financial professional when choosing your whole life policy:
Regular whole life premiums are set for the duration of your coverage. Your premiums are guaranteed to never increase, regardless of your health, the economy, or your age.
Mix of death benefit and cash value
While all whole life policies offer a guaranteed death benefit and cash value growth, the amount of cash value you accumulate can vary depending on the policy you choose. The guarantees of the policy are based on the claims-paying ability of the issuer
Cash value growth
Cash value can be as important as the death benefit. With whole life you can choose the Option to Purchase Paid-Up Additions Rider which allows you to purchase additional coverage. This will increase the cash value more quickly depending on how much extra you contribute. This rider includes an up-front expense charge on additional purchases.
How much does whole life insurance cost?
The cost of life insurance is based on several factors: your age, gender, health, lifestyle, and occupation. Regardless of your budget, a financial professional should be able to find a solution that covers your needs at a price that suits your wallet. The following are just some of the factors that determine the cost of your policy:
Life insurance is less expensive when you’re younger. The younger you are, the lower your premiums, which is why it’s best to buy earlier. You can lock in low rates to protect your family later.
Pre-existing health conditions or habits like smoking can have an impact on the cost of insurance.
- Coverage amount
The bigger the death benefit you select, the higher your premiums. Many financial professionals suggest buying coverage 10-15 times your income, if not more. 1
Your policy’s term length is how long your life insurance coverage lasts. Choose a term length that matches or exceeds your longest financial obligation (like your mortgage or seeing your children through college) so that your loved ones don’t end up liable for those costs. 2
Whole life insurance is a type of permanent life insurance, and it accumulates a cash value over time, but it’s usually more expensive than a term life insurance policy.