The concept of life insurance is nice: for one low premium a month, you can set your family up for years or even life in the event of your death. Unfortunately, as individuals age, a once easy-to-meet premium becomes unmanageable. Sometimes, this is due to poor health and extensive medical bills, while countless other times it is simply due to poor planning. Whatever the reason is, the outcome is always the same: the individual forfeits all benefits when they’re unable to make their premium payments. Don’t let this happen to you and invest instead in 20-pay whole life insurance.
The difference between 20-pay whole life and regular life insurance is that instead of having to maintain the premiums for the remainder of your life, you can set a term of either 10 or 20 years and make premium payments for the duration of that term. You can choose the amount of death benefits just like you can with a regular life insurance policy and set your payments to accordingly. Once the payment term is up and you have made your final payment, you are guaranteed the chosen amount of benefits.
Additionally, the benefits of a 20-pay whole life insurance policy accrue a cash value over time, and you can borrow against the policy at any time of your life. The longer the policy is maintained, the greater the cash value becomes. If a 20-pay whole life policy is something you’re interested in, talk to your local insurance agent about building a policy that is right for you.