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However, whole life insurance policies are expensive to maintain.
But is that always the case?
Two financial experts tackle the question on whether you shouldconsider getting whole life insurance.
Whole insurance policies are more expensive than term life insurance policies, but thats because of what you get.
Dr. Constance Craig-Mason, MRFC and NSSA, is the CEO ofConcierge Financial Advisory.
She is a dedicated financial planner, national social security advisor, investment advisor, and insurance broker.
While some policyholders accept this tradeoff since they have lower premiums, they arent building cash value.
Meanwhile, whole life insurance policies build cash value with each premium, and that gives policyholders more options.
Alex Adekola, the CEO and founder ofReadyAdjuster, has extensive experience as an independent adjuster.
He has collaborated with numerous carriers in roles such as adjuster, file reviewer and team lead.
He explained some of the perks of cash value.
So, it could be a good policy to have regardless of what financial situation youre in.
Whole Life Insurance vs.
Term Life Insurance
The main appeal of term life insurance policies is their affordability.
Adekola encourages consumers to review their finances before committing to a policy.
It depends on your budget and financial goals, he said.
It will provide you with high levels of protection at a lower cost.
you’re free to also opt for less coverage in exchange for lower premiums.
Craig-Mason believes whole life insurance is better in the long run.
Essentially, youre getting what you pay for.
For families focused on long-term stability, whole life can be a better fit.
Should You Invest in Stocks or Whole Life Insurance?
Stocks can appreciate in the long run and set you up for a better retirement.
However, whole life insurance can provide a payout right away in the event of an accident.
Whole life insurance provides security right now while investing in stocks offers security in the long run.
Craig-Mason said that you dont have to choose between stocks and whole life insurance.
IUL can be a great choice.
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