Illinois Whole Life Insurance – Your Permanent Protection

September 7, 2011 Category: Life & Long Term Care

Are you an Illinois resident thinking about purchasing life insurance? Perhaps you want to learn a little more about whole life insurance and what it entails before discussing your options with an Illinois life insurance agent. Understanding whole life insurance will help you make an informed decision when it comes time to purchase. Besides, insurance can be confusing-make certain that you are prepared and you will be in a much better position when it comes time to sign a contract. 

Types of Illinois Life Insurance  

In the state of Illinois, there are basically two types of life insurance available-permanent and term. Permanent Life Insurance is coverage for your entire life. The premium will never change, nor will the coverage as long as you are alive. In addition, a portion of every payment accumulates as a cash value, which is generally invested by the insurance company and can be accessed by the policyholder. 

The other type of life insurance- term life insurance-  is purchased for a certain amount of time or “term”. Terms are usually 5, 10, 15, 20, 25 or 30 years. While premiums are generally lower than permanent life insurance policies, there is no cash value. In most cases, when term life insurance expires, the insurer either discontinues or pays increasing premiums to continue coverage. However, in Illinois, term life insurance is renewable and guaranteed, meaning that the insurance policy can be converted into a permanent life insurance plan after the policy expires. 

Whole Life Insurance Defined 

Whole life insurance is a type of permanent life insurance designed to stay in effect throughout a person’s entire lifetime. Typically, rates remain the same for the life of the policy as long as it remains current and premiums are paid as agreed. Premium rates tend to be much higher for whole life insurance than for term life insurance, simply because of the cash value which increases during the life of the policy and can be used by the policy owner anytime through loans or surrender. 

For instance, as a policyholder, you can typically borrow money against the cash value and any unpaid policy loans or interest will be deducted from your death benefit. If you choose to cancel your policy, or surrender, you can also access the cash value. What’s more, most whole life insurance policies have dividends which can increase the value of a policy over time. 

Where to Look for Illinois Whole Life Insurance 

There are literally hundreds of websites where you can easily get Illinois whole life insurance quotes. However, be cautious because many of these sites are simply advertising low rates as a way to entice you. Unfortunately, in many cases, these rates will not apply. Be a smart shopper and take the time to research well known, legitimate insurance companies. Start by looking for reputable life insurance agencies in Chicago, Illinois. Only after reviewing several, established insurance providers and talking with a qualified Illinois life insurance agent can you truly make an informed choice. Remember, life insurance is a big decision and one that should only be made after careful consideration.