Life Insurance Coverage Options for Your Wife

Choosing a life insurance policy for your wife is not something that you should rush into. There are a lot of options and making sure that you choose the right policy is critical. For many years, it was not believed that women commonly needed life insurance policies. Most of the time, the man was the breadwinner for the family and their income was the only one that needed to be replaced. In today's world, that no longer applies. Many women bring home a large portion of the family income and are sometimes the sole provider of income for the family. Therefore, finding the right life insurance policy for your wife should be at the top of your priority list. Here are a few different options that your wife has for her life insurance policy.

Whole Life Insurance

One of the most common and well-known types of coverage is whole life insurance. Whole life insurance will stay with you for the remainder of your life as long as you pay the premiums. It builds cash value while you go as it has an investment component to go along with the mortality benefit. The investment component of whole life insurance is truly a "hands off" investment. You have no control over where the money goes and it builds a steady rate of interest. The longer you pay your premiums, the higher the cash value gets.

The unique thing about having a whole life policy is that you can utilize the cash value whenever you need it. If you want to cash out the policy, you will be provided with a check for the cash value. If you don't want to lose the policy, you can still access the money through a policy loan. With a policy loan you can borrow up to 90% of the cash value and pay it back with flexible terms.

Term Life Insurance

The other popular option on the marketplace is term life insurance. With term insurance, you are guaranteed a death benefit for a number of years. If you pick a 20 year term policy, you will have death benefits for 20 years. After the 20 years is up, your policy is done. Certain policies allow you to renew them at a higher premium than before.

The key benefit of term insurance is that it is less expensive than whole life insurance. You don't have an investment component in the policy and you are only paying money into a death benefits pool. Many investment experts say that you are better off buying a term policy and investing the difference between whole and life into the stock market. You will get a better return on your investment and you won't have any restrictions on the money.

The Best Policy

Choosing the best policy for your wife is a matter of personal preference. Some people prefer a form of forced savings that whole life provides. They also like having a policy that will last a lifetime. Others don't want to spend the extra money on whole and opt for term. Consider your options and make the right decision for your lifestyle.

blog comments powered by Disqus