Whole Life Is Not Expensive If Purchased
Whole Life Is Not Expensive If Purchased
Whole life is not expensive if purchased when you are younger. If, however, you have waited until your mid 50s to realize you need your own life insurance, the cost will be significantly higher. An option available in some states is “no load” or “low load.” A “no load” policy is simply a policy that does not include the cost of agent commissions and other initial policy fees. Of course, the agent will still be paid—by you.
When the agent writes or services your policy, you will pay him or her directly according to a servicing rate table established by the company. If you can find one, a no load policy allows your cash value to build more quickly since more of your money is going into the policy from the start.
One other option, available on either Term or Whole life, is the joint life which can be purchased as either first to die or second (last) to die. These policies insure two or more people on the same policy with a premium that is more expensive than insuring just one, but less expensive than having two policies.
In the first to die, the beneficiary receives the proceeds when the first insured person dies, and the policy is terminated. The assumption is that the second person will have the proceeds of the policy and will not need life coverage him or herself. In second to die, the face value is paid when the second or last insured person dies. These policies are often used to create a large inheritance or legacy.