Whole Life Insurance Rates Hampton Virginia VA
Reader’s Question:
I visited an insurance company in Hampton Virginia VA but ended up more confused than ever. What’s the difference between universal and whole life insurance anyway? They all sound the same to me!
Madison
Hampton, VA
Hi Madison! I’m sorry to hear that the insurance agent you talked to muddled things up. More than anything it is an insurer’s duty to do everything to ensure their client understands their products. Nevertheless, I’m glad you decided to ask keep on seeking information. I’ll try my best to do better than the insurance agent you met with.
First, I want to be clear that while they have basic similarities, whole life insurance is different from universal life insurance. Let’s start with the similarities – they offer guaranteed death benefits, the premiums are in fixed amounts to be paid on a regular basis and the life insurance accumulates a certain cash value. Now, onto the differences – how the death benefit is calculated, the way premiums are paid and the calculation of the cash value.
Basically, the whole life insurance deals with fixed amounts – fixed benefit, fixed premiums and defined amounts which contribute toward the accumulation of some tax-free cash value. Depending on your chosen insurer in Hampton Virginia VA, you may or may not be entitled to dividends earned from your investment. In contrast, the universal life insurance combines term insurance with investments in money markets such that there is no guarantee on the return on your investment. Universal life insurance offers a high-risk but with potentially high returns.
When you decide to take out life insurance, you may need to again meet with your local insurer. To prepare yourself for the meeting, I suggest you find out more about what you need by comparing some of the available insurance packages in Hampton Virginia VA. Just enter your zip code in the box on this site. You can even receive free quotes and use this site to outline your investment goals.
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