Term insurance can protect one’s loved ones in case of the insured’s demise. But whole life insurance policies cover the policyholder’s life and are the best way to get money back even during the insured’s survival. A whole life insurance plan comes with a premium-return benefit and helps build cash value. It is permanent life insurance, wherein one does not have to worry about the coverage expiring as long as premiums are paid on time. Top reasons whole life insurance is the right choice Protects the insured’s family Like traditional life insurance policies, whole life insurance provides death benefit protection. So, it will keep the insured’s family secure even in case of the insured’s demise. Since whole life insurance fully protects one with their first premium payment, it can be an excellent medium to leverage one’s money. Returns premiums paid on survival In term life insurance, the policyholder bears the cost of offering a secure financial future to their family. But, if the insured survives after the policy term expires, the premium becomes a sunk cost. While the premium amount one bears is nominal, it’s better to recover all the money paid upon surviving the policy term. So, if that’s what one seeks, whole life insurance is the right choice for them. Offers tax-advantaged growth Beyond the tax-free sum, one can leave for their loved ones the cash value increment on a tax-deferred basis. So, one can take a loan against the value and pay the money back as per the term, or the amount gets deducted from the money one leaves for their loved ones. It is easier to assess this tax-free asset compared to other assets one keeps for their heirs. While the taxes may impact assets like a property or other aspects of the estate, such is not the case with whole life insurance.

Medicare is a federal health insurance program for individuals over 65 years of age , those with disabilities, or those with certain diseases like permanent kidney failure. In times of health emergencies, Medicare plans can provide a financial safety net to people by fully or partially covering their treatment costs. But, there are several conditions individuals must fulfill to be eligible for a Medicare plan. Not knowing these can lead to financial setbacks during health emergencies. Things to know before choosing Medicare coverage Medicare has different parts Medicare has various parts. Part A, also called Hospital Insurance, covers inpatient hospital stays, care received in nursing facilities, and home care services to some extent. Part B, or the Medical Insurance, covers all expenses related to routine doctor visits, outpatient care, medical supplies, and preventive services. Medicare Part A and Part B are called the Original Medicare. Further, Part C is the Medicare Advant age plan that offers an alternative to Original Medicare, while Part D is the prescription coverage that covers the cost of recommended treatment options. One can purchase Part A and B from the government, while Part C can be purchased directly from a private healthcare company. There is also the Medicare Supplemental Insurance or Medigap, which can be an add-on to the Original Medicare plan. Medigap helps cover costs that Original Medicare does not cover, like copays and deductibles. Medicare has a team to address queries One can sign up for Medicare through its official website. One can also compare plans on the website in one’s area and talk to agents to get the most suitable deal among all . Those who have queries related to Medicare plans can reach out to the sales team in their area or talk to Medicare brokers or advisors. They can not only resolve queries but also help one to get enrolled.

Life is unpredictable, which is why, many choose to get life insurance that can offer them and their loved ones financial security. Here there are mainly two options, opting for a fixed term insurance policy (term life insurance) or lifetime coverage (whole life insurance). The latter is more expensive but offers lifelong coverage, offering some peace of mind to policyholders. But it may not be the best option for everyone for a few reasons. 1. Lack of transparency One of the primary issues with whole life insurance is that it is often sold inappropriately and made to sound too good to be true. Agents and insurance providers may not share details regarding certain costs, like commission to the salesman, administrative costs, and the actual cost of the insurance. If such hidden costs are revealed beforehand, the terms may be unclear. As this is already an expensive policy, the hidden details can make one regret the decision later. 2. Unnecessary coverage Whole life insurance is often worth less than it costs. The death benefit it offers is also lower than term insurance. Also, whole life insurance might be unnecessary specifically for certain people, like single policyholders. Here, nobody depends on the income of the policyholders, so they do not need to buy insurance for a death benefit. Alternatively, if the policyholder has only a partner as the dependent, they may be better off investing elsewhere and getting higher returns that they can leave behind for the partner. A whole insurance would be unnecessary here. Instead, one can opt for term life insurance to save money on premiums and get a bigger death benefit for their partner. 3. Expensive premiums Compared to the term life insurance, whole life insurance can be quite costly. For instance, where a term life insurance policy would come with an average monthly premium of a few hundred dollars, say $300–$400, whole life insurance premiums tend to be thousands of dollars—about $4,000–$4,5000.

Whole life insurance is a type of permanent life insurance. It offers lifelong coverage and several guarantees, which appeal to many. Beneficiaries can claim the death benefit after the policyholder’s passing if the premiums are paid on time and all the plan’s guidelines are followed. One can also receive dividends and access unique features like cash value accumulation. That’s why people shopping for life insurance should consider a whole life insurance policy. Lesser-known features of whole life insurance Whole life insurance plans have been around for a while, so many are familiar with their benefits. For example, people know they offer coverage for the rest of their lives and that their loved ones will receive a guaranteed death benefit when it is time. But that’s not everything. Whole life insurance also has other features that still need to be explored. For instance, some do not know they can tap into it even while alive. And being unaware, they tend to overlook whole life insurance, losing out on a great investment opportunity. Dependable death benefit that can be used for anything If someone is the sole breadwinner, it is understandable for them to put their loved ones’ financial well-being first. Whole life insurance can help people materialize this goal. It gives the beneficiaries, whether the spouse, an aging parent, a child, or someone else, a potential tax-free death benefit. Loved ones can use the death benefit for anything. For instance, they can use it to meet everyday expenses, repay loans or mortgages, pay for the funeral, and fulfill any other need they may have going forward. Unlike term insurance, whole life insurance covers one’s entire life, regardless of how many years the policyholder lives. Of course, the guarantee remains active as long as the individual pays the premium amount. Reliable locked-in rates The premium amount remains the same in whole life insurance plans.