Whole Life Vs. Term:Business Insurance Agents Know What" s Best For You
Of the many things that business insurance agents can do, one is to handle questions about whole life vs. term policies. This article looks at some of the differences between whole life and term - as well as discussing the vital role your business insurance agent plays in helping you make the best decisions possible, which is right for you when.
Whole Life
A Whole Life policy remains in force for the insured's entire life, as long as the premiums are paid. The policy cannot be canceled by the insurer, but only the insured. This type of policy has a death benefit and a cash value that continues to increase as time goes by.
Needless to say their are a zillion flavors of this "permanent" life insurance with an almost unlimited variety of combination's - premiums, cash values, investment accounts, benefits, and on and one and on. What is clear however is that these policies do offer a means by which an individual or an organization can combine the elements together to create security for the beneficiary whenever it is required in the future.
When you are twenty-five years old you may not be able to imagine the circumstances that would require a death benefit when you are old, say sixty five or over. On the other hand there will likely be some responsibilities remaining at that point - therefore making whole life or one of its variations important to you still.
Business insurance agents often recommend whole life or one of its derivative because their experiences are greater than yours. It is likely that your business insurance agent can see around corners that look like solid rock to you. A business insurance owner once commented to me that the difference between age 64 and age 65 is not one year - it is one day. Is it possible that what was required, or at least wished for one day would be the same the next?
Term
Originally, all insurance policies were "term" because they were only valid for a certain period of time. Whole life was developed after policy holders became upset about paying premiums for many years, only to realize that their needs extended beyond the term for which the term life policy was designed.
Just like whole life policies have changed over the years, so have term. Today there a dozens of different kinds of term life insurance policies - and they can be combined with variations of each other along with one or more types of whole life to totally customize the death benefits, premiums, and scope of coverage that is best for you personally.
Which is better, term or whole life seems to be the question on both business owners and individuals lips. It is also the subject of numerous financial talk show experts and un-countable numbers of books and articles. Alas, it is the wrong question.
The right question is "which business insurance should I trust to help me sort out the best insurance solutions for me right now" because at the end of the day whether you should own whole life or term or a combination is a decision that should be based on what you want the insurance to do for you and when.
Business insurance agents are trained to help you come to the conclusions about whole life and term that are best for you today and in the future. That is what they are trained to do. They know about types of insurance you will never have heard of and ways of using it that is beyond us mere business owners.
Furthermore business insurance agents have all your farm and business insurance needs in mind. One or more of the companies they represent may offer special policies that combine coverages in ways that reduce your overall costs while still maintaining the level of coverage that is right for you.
Business insurance agents who handle all of your insurance needs understand how every insurance decision, not just whole life vs term, combine together to create a picture of your organization's total financial security.
And they also know how to help you decide which risks you can absorb, saving the premiums, and which risks should be transferred to an insurance company - allowing you to reallocate your insurance premiums to cover the risks you and your business could never survive.
Whole Life
A Whole Life policy remains in force for the insured's entire life, as long as the premiums are paid. The policy cannot be canceled by the insurer, but only the insured. This type of policy has a death benefit and a cash value that continues to increase as time goes by.
Needless to say their are a zillion flavors of this "permanent" life insurance with an almost unlimited variety of combination's - premiums, cash values, investment accounts, benefits, and on and one and on. What is clear however is that these policies do offer a means by which an individual or an organization can combine the elements together to create security for the beneficiary whenever it is required in the future.
When you are twenty-five years old you may not be able to imagine the circumstances that would require a death benefit when you are old, say sixty five or over. On the other hand there will likely be some responsibilities remaining at that point - therefore making whole life or one of its variations important to you still.
Business insurance agents often recommend whole life or one of its derivative because their experiences are greater than yours. It is likely that your business insurance agent can see around corners that look like solid rock to you. A business insurance owner once commented to me that the difference between age 64 and age 65 is not one year - it is one day. Is it possible that what was required, or at least wished for one day would be the same the next?
Term
Originally, all insurance policies were "term" because they were only valid for a certain period of time. Whole life was developed after policy holders became upset about paying premiums for many years, only to realize that their needs extended beyond the term for which the term life policy was designed.
Just like whole life policies have changed over the years, so have term. Today there a dozens of different kinds of term life insurance policies - and they can be combined with variations of each other along with one or more types of whole life to totally customize the death benefits, premiums, and scope of coverage that is best for you personally.
Which is better, term or whole life seems to be the question on both business owners and individuals lips. It is also the subject of numerous financial talk show experts and un-countable numbers of books and articles. Alas, it is the wrong question.
The right question is "which business insurance should I trust to help me sort out the best insurance solutions for me right now" because at the end of the day whether you should own whole life or term or a combination is a decision that should be based on what you want the insurance to do for you and when.
Business insurance agents are trained to help you come to the conclusions about whole life and term that are best for you today and in the future. That is what they are trained to do. They know about types of insurance you will never have heard of and ways of using it that is beyond us mere business owners.
Furthermore business insurance agents have all your farm and business insurance needs in mind. One or more of the companies they represent may offer special policies that combine coverages in ways that reduce your overall costs while still maintaining the level of coverage that is right for you.
Business insurance agents who handle all of your insurance needs understand how every insurance decision, not just whole life vs term, combine together to create a picture of your organization's total financial security.
And they also know how to help you decide which risks you can absorb, saving the premiums, and which risks should be transferred to an insurance company - allowing you to reallocate your insurance premiums to cover the risks you and your business could never survive.