$15,000 Whole Life Insurance Policies

$15,000 Whole Life Insurance Policies

This article will be explaining what life insurance is, how it works, the cost of different whole life insurance quotes and how $15,000 life insurance policy premiums change with gender and age.

What is a whole life insurance policy?

Whole life insurance is a form of life insurance that offers coverage your whole life. Even if you live past 120, as long as you pay your premiums you will be covered. Whole life insurance quotes will never expire and the premium costs will remain constant throughout your life.

Life insurance is very simple to understand, you pay your insurance provider a certain amount for as long as the policy requires. In case of whole life insurance the amount is paid your entire life. When you pass away, your beneficiaries receive a lump sum from the insurance provider. You can have friends, loved ones, family members, etc. as beneficiaries. You can nominate as many beneficiaries as you like.

The main aim of this amount is to provide your dependents, family, loved ones, etc., financial safety after your death. This amount could be used as income replacement, for buying a home, paying for college, etc.

The main components of most whole life policies are as follows:

  • Premium

The premium is the cost of your insurance policy. You can pay the premium monthly, quarterly, half yearly or yearly.

  • Death Benefit

The death benefit is also called the face value. It is the amount your beneficiaries receive from the insurance provider when you pass. The amount of the death benefit depends on the insurance policy you purchased. It is often paid as a tax free lump sum.

  • Cash Value

Whole life policies have a cash value component. The cash value comes from your premiums. Every time you pay the premium, some of it goes to building the cash value and the rest to the cost of insurance. The cash value accumulates, tax deferred in a separate account which also serves as a savings account. You have the right to withdraw from the cash value during your life. When you pass away, the cash value stays with the insurance company. Your beneficiaries only receive the death benefit. They can get the cash value if you purchase a rider that specifies that both the death benefit and cash value go to them.

What is burial insurance?

Also known as funeral insurance and final expense insurance, burial insurance is a kind of whole life insurance. This insurance is designed to take care of your end of life expenses. These expenses include unpaid bills, debts, business loans, mortgages, student loans, funeral and burial expenses, etc. Burial insurance usually requires no health exams and has quicker approval rates.

When purchasing burial insurance always remember that since it is a type of whole life insurance, its premiums never change. There are many companies that sell final expense insurance policies with rates that increase over the course of the policy.

$15,000 life insurance quotes

This section will be covering the different available whole life insurance quotes within $15,000. The prices listed below are taken directly from insurers.

If you are considering any of these $15,000 life insurance policies, remember the following:

  • If you have any health issues, share them with your provider, agent or broker. Transparency is important as your health is a major factor determining the cost of whole life insurance quotes.
  • If you smoke, you will probably pay higher premiums as the rates below are for people who do not smoke or have not smoked within the past one year.
  1. AIG

AIG only sells guaranteed life insurance. Guaranteed life insurance is a kind of life insurance. It is unique as it offers instant coverage without asking any health questions or medical exams. But there is a catch; it comes with higher premiums and a 2 year waiting period. The company charges more premiums because they took more risk insuring you. The waiting period means that unless you pass away 2 years after the policy, your beneficiaries will not receive the full death benefit. If you pass away within the first 2 years of the policy, they only receive the premiums and a little interest.

Are $15,000 burial insurance policies worth it?

Is a $15,000 life insurance policy right for you?  How do decide? Here are some factors you should consider when deciding how much coverage you want.

  • Will the amount be enough to pay off all your debts and still leave some money for your dependents?
  • Can you afford the policy? There are many cases of people purchasing expensive whole life insurance quotes and then surrendering them because they could not afford them. This is a waste of money! If in doubt always start with a small amount, and then opt for more if necessary.
  • Will it cause family drama? It’s a fact, money brings out the worst in people. If you feel that a $15,000 life insurance policy, will leave behind money after your end of life expenses have been paid, opt for a smaller coverage.

How do I choose the best policy?

When buying burial insurance policies, people mostly spend time on finding a company with a good rating. Though the company’s finances and rating is important, here are some other questions you should ask yourself.

  • Is the policy the cheapest among the policies you chose?
  • Does it provide immediate coverage?
  • Does it require a medical exam? Medical exams usually mean higher premiums.
  • Buy the policy from a broker or agent, they have more options for you to choose from.
  • Do you really need guaranteed life insurance? It should always be a last resort.