Get the Coverage You Need at a Price You Can Afford
Hawaii is one of the most beautiful places you can live. Are you thinking of buying life insurance? Maybe you're about to get married or start a family. Whatever the reason, you need to explore the options available to you before you make a decision about which specific product to purchase.
A Permanent Option
Whole life insurance can be viewed as a savings plan of sorts. It has a minimum guaranteed cash value, a guaranteed death benefit, and fixed premiums. The plan is good for the person's entire life, and it never needs to be renewed because it never expires. Two main types of permanent coverage are available, and the only difference between them is the insured's own preference, based on his or her best interest.
The two whole life policies available are called "participating" and "non-participating." Participating policies share the company's dividends with the consumer. Non-participating policies cannot be changed once they have been issued, so everything, such as premiums, death benefits, and cash surrender value is decided when you sign up for the plan.
Unfortunately, as far as a savings plan goes, you could do better than to purchase a well-funded policy. On the other hand, the purpose of this type of coverage is to protect your beneficiaries in the event of your death, so keep this in mind when shopping for a solution.
Temporary Coverage Offers Low Premiums and Flexibility
Term life insurance quotes will expire after a certain length of time unless the policyholder can (and does) renew it. While a permanent plan may be redeemed for cash, a term product only pays in the event of the consumer's death. This means that term coverage may be purchased for a set period of time, such as five years or 25 years. The applicant can decide how long he or she wants to keep the policy in effect at the time of application.
If you are thinking of cashing in your old plan in order to get a new one, make sure you explore all of the options and find out what you need to do in order to redeem your plan for the most money. Many policies must be maintained for twelve to fifteen years prior to cashing out in order to have a worthwhile cash value. If you cash out such a policy before this time, you may not get much cash back in comparison to what you could get a few more years down the road.