In Ohio, life insurance policies provide funds according to the plan chosen by a policyholder. Typically, consumers purchase life insurance to cover funeral costs and/or to offer financial assistance to their family. A local life insurance agent in Hancock County Ohio can provide information about each policy available to the consumers.
What is Whole Life Insurance?
A whole life insurance policy is insurance in which the policyholder pays into the program throughout their life. The value of the policy can increase each year. The policies are purchased to provide coverage for funeral expenses, financial support for families, and to generate savings.
What is Term Life Insurance?
Term life insurance provides a predetermined face value for a specific term. If the policyholder doesn’t die within the term specified, they must renew the policy. The insurance doesn’t increase over time, and if any premiums aren’t paid, the policyholder’s family won’t receive any of the funds.
Can Consumers Borrower Money off the Policies?
Yes, the consumers can borrow money off a whole life insurance policy. The consumer can obtain a loan up to the value of the total balance of the policy. It is necessary for the policyholder to repay the loan to restore the full balance of the policy. The policyholder won’t face any late charges or finance fees for the loan. Essentially, they are borrowing the money from themselves.
What are the Shortcomings of the Policies?
The most common shortcomings of life insurance policies are that if the policyholder doesn’t pay premiums on time, they lose their investment, and some policies aren’t restorable. The term policies don’t present as high of a payout as the whole life policies always. In some cases, the consumer will need additional funeral or burial policies to cover the full cost of the services.
In Ohio, life insurance policies offer either a face value or an accumulated value generated over time. The policies provide assistance for families after the policyholder dies. The value of the policy depends on the choices of the policyholder. However, whole life policies could generate a higher return if it is started earlier. Consumers who need to learn more about the policies contact a life insurance agent in Hancock County Ohio.