Many individuals that purchase a whole life policy wonder if they should designate a beneficiary in their last will and testament. However, the primary benefit associated with a whole life policy usually passes away prior to probate, so a will is not required to make sure that your insurance coverage pays out.
As with all life insurance policies, whole life plans typically provide coverage for funeral expenses as well as medical bills and rehabilitation for those who are unable to work. Therefore, as a Whole Life Insurance Policy can provide an individual with financial security, it's important to consider whether or not you should sell these policies to an existing employer.
Some individuals don't want to sell their whole life policy. There are benefits to purchasing and maintaining an insurance policy through an agent, but some individuals decide they prefer the independence and flexibility associated with obtaining their own insurance policy. In addition, some individuals want to have greater control over their own finances than others.
This Life Insurance is a contract between you and an insurance company that states how much money you will receive in the event of your death and how your family will be paid if your death does not result in an amount of cash that satisfies the contract. Once you purchase your Whole Life Plan, you will be required to continue to pay your premium for a specific amount of time. The premium payments are based on your current age and your current health status and most insurance companies allow you to continue to pay this premium indefinitely.
Different types of Whole Life Insurance Policy Plans
Many insurance companies offer different types of Whole Life Plans. Generally, this policy covers a pre-defined amount of time after you die and a Term or Universal Whole Life Insurance covers any period of time up to the agreed upon end date. Many insurance companies also allow you to change your coverage from a Term or Universal to a Whole Life Plan at any time.
When choosing an insurance company to sell your whole life policy to, be sure to investigate the options offered by the company. While insurance policies generally come with a standard term of five years, the insurance policy may not provide coverage after the term has expired. If the insurance plan does not cover you and your family, there is no penalty for canceling the policy prior to the end of the term.
As you consider selling your insurance policy, consider contacting a broker to obtain quotes from various insurance companies for the same product. If the insurance broker does not charge a referral fee, be sure to ask about any additional fees if you choose to use this service. Insurance brokers often give you the opportunity to choose a company based on price and the quality of the service provided. It is also a good idea to find out what discounts the company may offer if you choose to buy your Whole Life Insurance policy online.
When it comes to selling your Life Insurance to a third party, be sure to check the policy for any restrictions or stipulations regarding the sale. Insurance companies are notorious for charging exorbitant commissions when selling their products to individuals.
Insurance brokers often require that the purchaser of their services purchase two policies from the broker's website prior to agreeing to purchase their services. This prevents the individual from selling his or her insurance policy to someone else and receiving a much lower price than what it is worth.
If you decide to sell your life insurance to a third party, you should discuss the terms of the agreement with your broker. Be sure to fully understand all of the terms associated with the sale. Many life insurance brokers will require that the purchase price of the policy is paid in full at the time that the buyer agrees to purchase the policy.
It is important to remember that the cost of a Whole Life Insurance policy can vary significantly based upon the age of the person buying it, the health status of the individual, the amount of the premium, and any special discounts that the insurance company may be offering. When purchasing a Whole Life Policy, always review the fine print before agreeing to make a purchase. You should also make certain that the policy provides you and your loved ones with adequate coverage in the event that you should pass away.