No one likes to focus on nasty details or terrible things, but when it comes to things like life insurance you can’t really afford to turn a blind eye, as they say. Moreover, if you have a family then life insurance will provide that extra bit of safety, security and comfort which they will turn to in the event of the unfortunate. Florida features a large number of life insurance providers who deal in whole life policies, all you have to do is gather up some quotes and contrast / compare…
What is whole life insurance, anyway?
Just as its name implies, “whole life” insurance is something that is meant to cover you for your entire lifespan. As opposed to other types of insurance, like term, a whole life policy will likely require that your front yearly premiums, which is largely what provides these companies with the incentive to offer their services in the first place. Actual stipulations will vary widely, and as expected there are a nearly limitless number of additional things to consider, like what type of whole life policy is right for you as well as guarantees, requirements and more.
Here are some of the basic types of additions made to typical whole life insurance quote for Florida which you should definitely take note of:
- Limited pay – more or less the same as any other participating policy only the costs might end up being lower later on. The trade-off here is that a higher initial series of payments might be required.
- Single premium – this refers to a policy where generally only a single (usually quite large) premium payment is required.
- Participating – instead of a static return, a participating policy allows policy holders to share in the company’s profits, which is great if your provider suddenly has a windfall of success years after you signed with them.
- Non-participating – these types of policies generally remain active for their entire life and tend not to be altered in any way.
- Indeterminate premium – with this option you will have a guaranteed maximum premium amount to cover, however if things go well for the provider this cost might actually lower significantly with no loss of coverage.
- Economic – this is essentially a hybridization of term insurance and various “participating” models. The only pitfall here is a slumping return from the latter years of any particular policy, largely due to economic shifts and company missteps.
- Interest sensitive – this type of policy was designed to match the moves of international markets and as its name implies, is interest sensitive with regards to the policy’s actual value (at any given time).
One should always very carefully evaluate all of one’s needs and read all the fine print associated with any policy before making any lifelong decisions. Failure to include some provision might result in the loss of thousands of dollars of future returns.