But, notably, they are more
costly than term life policies and agents are incentivized to sell them because they provide much greater commissions.
Not exact matches
For example, whole
life insurance
policy premiums tend to be far more
costly than the premiums associated with
term life insurance
policies.
The cost of the whole
life policy is the reason why many people choose other option since it can be 3 - 5 times more
costly than a
term life insurance
policy.
But it's also
costlier than a
term life insurance
policy (up to four times as much for a comparable death benefit), and not as budget friendly.
If you're just starting out, universal
life insurance offers an excellent means to accommodate the changes in your
life, but may be more
costly than a simple
term policy.
For example, whole
life insurance
policy premiums tend to be far more
costly than the premiums associated with
term life insurance
policies.
As an example, if you have
life insurance to pay off your mortgage so that your family can remain in your home should something happen to you, but your mortgage balance will be paid off in ten years, then it may make sense to cover that need with an inexpensive
term policy rather
than a more
costly whole
life insurance plan.
It's more
costly than a conventional
term life policy because it comes with a money - back guarantee.
It is important to realize that purchasing
term life insurance with the disease will likely be more
costly than buying a
term life insurance
policy for someone who is in good health.
Given the high probability of death by such an advanced age, whole
life insurance
policies are significantly
costlier than a
term insurance plan.
In many cases, those who are applying for a no medical exam
life insurance
policy may have health conditions that deem them as being more of a risk to the insurance company — and because of that, these types of
policies will often be
costlier in
terms of premium
than a medically underwritten
policy, with all other factors being equal.
As we've discussed in earlier articles,
life insurance
policies that build cash value, such as whole or universal
life, are more
costly than pure insurance
term policies because part of that additional cost goes into building cash value.