We hear about insurance every day. Many of us in San Diego are caught between the decision of choosing between whole life insurance and term life insurance. Definitely, you have to make the best decision for your loved ones as well as your beneficiaries. So how are you going to go about it? First, let us begin by learning about what these terminologies mean as well as adequately differentiating between these two famous types of life insurance.
Fundamentally, life insurance in San Diego on its own is a very flexible financial instrument that can serve a multiplicity of financial goals depending on what you want for your beneficiaries. This stretches all the way from leaving behind a legacy or just providing immediate financial security. Therefore let us examine some of the basic features of term life insurance to see if they align with the financial objectives you have in mind for your life insurance in San Diego.
Primary features of term life insurance
It would be important to significantly point out that term life insurance will majorly provide death benefits. Does this suit you? Term life insurance in San Diego from the way it works would only disburse payments in the event of your demise while the terms of your insurance policy are still operational. Yes, we would admit here that term life insurance is relatively more affordable compared with other types of life insurance.
However, the standout point here about term life insurance is that you are going to buy the insurance package for a specific period of time. This could be 5 years, it could be 15 years, or even as far as 30 years depending on your preference. Of course, you are not going to forget considering your budget as well, are you?
Well, the reality is that most of your insurance companies in San Diego are smart guys. Too bad! They know enough to charge you higher as you mature and get well older. Term life insurance gets notably more expensive when you climb above the 50 years milestone. So if you want to possibly extend your term life insurance beyond the prearranged length, then you simply have to renew it.
An added beauty here is that you can intelligently use a term life insurance to sort of consolidate your permanent life insurance policy in form of extra coverage. On the other hand, should you wake up on the wrong side of the bed one morning, you are free to convert your term life insurance to whole life insurance after closely reexamining your options and conditions. Cool, so we think you have learned a nice bit of term life insurance in San Diego. Let us examine some of the major features of a whole life insurance at this interval.
Looking at whole life insurance
The big thing that makes many ecstatically jump at whole life insurance is that it covers you for the entirety of your life. Sounds interesting right? But this wouldn’t come as cheap as your pizza. Whole life insurance in San Diego makes provisions for death benefits which would have accumulation across the operational life of the policy. But then your insurance provider is not always very generous, he would ensure you qualify for such with a grilling health examination.
Notwithstanding, choosing between whole life insurance or term life insurance is not a decision you hastily and hazily make after guzzling down countless bottles of beer. You have to soberly and diligently make your decision after carefully considering the variables of both packages. A good insurance agent in San Diego who is well immersed in the industry can masterfully put through what either insurance packages entail and which fits your circumstance more compatibly.
Of course as said, insurance providers in San Diego are always keen about your age as well as your current health status. Sure you may be wondering in face of all these protocols if you are actually applying for life insurance or applying to be drafted into the army. But those guys at these insurance companies would need all these to ascertain how befitting you are for an insurance coverage as well as which package fits you better.
Considerations when choosing between term and whole life insurance
In addition to this, when choosing between whole life insurance and term life insurance, you are going to rightly ruminate over the needs of your loved ones financially. Here is the sad one. Life is so sweet that no one really wants to think about his death, but then you must duly consider your death expenses (in terms of funeral expenditures) when choosing between both insurance packages. More than this, how old are your children? All these would factor into the decision making process. Not only this, you have to also consider your mortgage as well as your current debts.
Additionally, when are you to retire and what retirement preparations have you installed? You also have to consider if you intend setting up a trust in your will. Could your children have future needs you need to anticipate like college tuitions? Would you also like to donate the proceeds from your life insurance to a charity? Agreed, the list of considerations to make (when choosing between getting a whole term insurance or a term life insurance) is getting longer than the requirements needed to date the Kardashians, but then this decision is worth all the laborious pondering you can make. It would definitely cost you more – even painfully – when you choose the wrong package.
Looking more practically into this scenario. Someone who has crossed 37 years, also having kids would consider term life insurance in San Diego to meet the financial sustenance of his family when he is the primary financier of his family. So when you add up your living expenditures, summing up the tuition of your children, your home mortgage and all that all that stuff, you would be in a better position to tell the face value of a policy in the case you happen to die prematurely. PS. This is more suggestive than definitive.
Now looking at the other side of the fence, you could make do with the choice of a whole life policy which wouldn’t only have to settle the policy face value in case your death unfortunately comes before your wards finish their education; but then you would still procure proceeds (in form of cash value) nourishing your loved ones with added benefits. Also, if you are strongly considering consolidating a vibrant cash portfolio in preparation for your retirement, then you could possibly convert a percentage of your term life insurance policy to the whole life insurance variant.
So should you be in your late fifties now and for one reason or the other, a life insurance just occurred to you, your needs should very much different from that of the common folks. Yes possibly, your children are done with their education and even piled your garden with exciting yet troublesome grandkids. Definitely at this age, you are not that exuberant teenager anymore, a life insurance becomes more of a necessity.
You could choose a small life insurance policy which would take care of the final expenditures you would be incurring in this advanced facet of your life. You could also be on the lookout for that befitting whole life policy that can sufficiently take care of the financial obligations of your partner or spouse say she or he possibly outlives you.
There are quite a handsome number of flexible options for you when it comes to matching life insurance to the peculiarity of your needs. But then you could still immensely find beneficial if you can still consult a professional insurance agent in San Diego who would enlighten you further on how term life insurance differs from whole life insurance and what situation each package rightly applies in your scenario.
Is It Appropriate To Switch You Switch Your Term Life To Whole Life Insurance?
As we have earlier envisaged, a lot of the insurance providers in San Diego would allow you to switch from your term life insurance package for a whole life insurance package. But then before you leap at this window of opportunity, you have to objectively ask yourself if converting from short term to whole life insurance is actually best for you in your precise situation. Agreeably, a couple of circumstances would vindicate swapping the short term variant for the whole life package.
The most obvious reason is that you are approaching the twilight of your 50s and your term life insurance policy is about expiring. In such a situation, it could be a smart idea converting it to a whole life policy. This is more particular when you consider the swelling cost of renewing your term insurance acknowledging your advancing age. Another situation that it could sound smart to convert to whole life insurance policy is if you are envisioning to set up a trust in your will. It could be that you want to set up an estate and are quite bothered in view of the estate taxes.
Switching to whole life insurance also makes sense when you are thinking of a non-taxable investment option as well. You could also convert your term insurance plan to a whole life insurance policy if you are conceiving the possibility of exploring loans from the cash value that your life insurance policy accrues.
In reality, there are a multitude of ways to pattern your insurance policy in San Diego so that it precisely attunes to your financial needs as well as those of your loved ones and beneficiaries. Here at RsInsured, we can duly enlighten you on what options better suit. How about you reach out to use to get you the best insurance policy you can possibly enjoy?