Do you have a whole life insurance policy that is becoming more and more unaffordable? Do you feel like you are paying too much for a small death benefit? Do you want more life insurance coverage for your family without having to pay an arm and a leg. You may want to consider a switch to term life insurance.
Whole life insurance has it’s places in the life insurance arena. If you are looking for permanent, lifelong insurance coverage, then whole life is a great choice. The only problem is that whole life insurance is expensive. It costs a lot more than term life because it’s permanent coverage and it also builds cash value. Another problem is that what you can afford to pay today can drastically change as time goes on. Take a look at the current economic condition. People are losing jobs left and right so family incomes are being cut. That expensive whole life policy that used to make you feel all warm and fuzzy may now be a thorn in your side.
Is your financial situation temporary? If you’ve lost your job or had a temporary decrease in your income, then you may still be able to hold onto your whole life policy. If you have cash value then that money can usually be used to cover your premiums. If your financial situation is not temporary and you really need to cut your costs, then a term life policy is a good idea. Be sure to shop around for competitive quotes and pick a policy that is affordable for you now and in the future. Get free quotes today.
Keep in mind that terminating a life insurance policy should be a well thought out decision. By taking out cash value or terminating a policy, you can incur tax costs so be sure to speak with your agent or tax advisor before you make a decision.