Brought to you by Health IQ: Is Whole Life Insurance a Good Choice for You?
Many people are confused about whole life insurance, which is a category of life insurance that blends savings tools with life insurance coverage for your family. Many financial pundits advise people to buy term life insurance, which has a lower monthly premium, and invest the difference between the cheaper term life premium and the more expensive whole life policy payments in a mutual fund. That’s decent advice, but there are some people who will do better with a whole life policy.
A person who lacks the self-discipline required to put that difference away every month, for instance, will accumulate nothing, even over a 20- or 30-year insurance term. Someone who doesn’t really understand investing could actually lose money if they buy the wrong mutual funds or buy and sell at the wrong times in the market. And someone who is already heavily invested in stocks would be missing an opportunity to diversify their portfolio holdings. There are also tax differences between a whole life policy and a mutual fund.
Whole life insurance is an effortless way to set money aside for one’s future every month and is well-suited to those who lack discipline. The cash value of the plan grows even during times when the stock market is on a downslide, so it brings stability to your portfolio. And you can access your cash before retirement without the obstacles that your 401(k) or individual retirement account might pose. The experts at HealthIQ.com have created this quiz to test your knowledge of whole life insurance. Give it a try and consider whether whole life has a place in your financial plan.
About Health IQ
Health IQ’s mission is to improve the health of the world by celebrating the health conscious through financial rewards. Health IQ delivers better rates and underwriting, and was recently featured in sites such as CNBC, Venturebeat, and TechCrunch. and partners with top-rated insurance carriers such as SBLI, Ameritas Life Insurance Corp. and Assurity Life Insurance Company, and reinsurer partner Swiss Re to offer health conscious people between 4 and 33 percent lower rates on life insurance. Founded in 2013 by a team of health conscious entrepreneurs, the company is a licensed life insurance company in all 50 states and has helped tens of thousands of individuals secure a total of $5.3 billion in insurance coverage.