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Whole Life Insurance Overview

whole life insurance | Freeman Insurance Solutions

Whole life insurance is a type of permanent life insurance that lasts for the rest of the insured’s life. At Freeman Insurance Solutions, the coverage provides an assortment of guarantees. Thus, the insured know the extent of their policy and how they can access their cash value while still living.

Our Whole Life Insurance Offers Three Guarantees

  • A guaranteed minimum rate of return on cash value. Whole life policies accumulate cash values that the insured can use to pay missed premium payments or as an emergency fund. The cash value grows according to the insurer’s pre-set conditions.
  • A guaranteed level premium. The policy has consistent premiums for as long as the insured continues to pay.
  • A guaranteed death benefit. The amount paid to beneficiaries is guaranteed to remain the same.

What Affects Whole Life Insurance Rates?

Age and Gender

The older the insured, the higher the premium rates. Additionally, women often get a lower premium rate than men. This is because they have a higher life expectancy though other factors play into this as well.

Height and Weight

Insurers use either body mass index (BMI) or a custom build chart to calculate risk factors that can lower a person’s life span based on health. High susceptibility to sickness increases a person’s premium rates.

Health Conditions

Individuals living with pre-existing illnesses or other health conditions may experience high premium rates. This is mainly true if said illness or health condition is likely to affect life expectancy.

Family Health History

A person’s gene pool is also accounted for. This is because illnesses within familial lines can increase their vulnerability to certain diseases and disorders. This affects their insurance rates if their family has or had conditions that could lessen their life span if they were to have the condition.

Nicotine and Marijuana Use

Occasional or continued smoking, chewing, or vaping of nicotine-containing substances increases a person’s premium rates. This is due to the fact that the use of these substances is related to health issues. The same applies to marijuana when used for medical or recreational purposes.

Substance Abuse

Premium rates are also high for alcohol and drug-dependent applicants. The reason for this is their link to life-threatening health conditions.

Criminal History

A person with a criminal record pays higher premium rates. Their life expectancy reduces due to their risky activity and community.

Driving Record

A person with a record of reckless driving also gets a higher premium rate. Risky driving is likely to affect life expectancy if an accident occurs.

Hobbies and Activities

People working in high-risk jobs experience higher premiums because of hazards in their occupations. Similarly, individuals who enjoy high-risk activities and hobbies often get higher premium rates.

Get in Touch With Us

Whole life insurance has excellent benefits for some people. The advantages may depend on a person’s profile. Term life insurance is another option that may fit other individuals.

Contact Freeman Insurance Solutions to find out if whole life insurance is right for you. Also, reach out to us to learn about our other products and services.

If you’re looking to apply for life insurance (with no medical exams or blood tests) by just answering a few health questions online, click here to get started!

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