Recently updated on October 25th, 2022 at 11:01 am
People buy life insurance policies for various reasons, including transferring wealth, paying funeral expenses, and augmenting retirement income. While you are still paying your premiums, whole life insurance offers protection. Some policies also accrue cash values that the certificate holder might use as collateral or cash payments upon surrender.
A whole life insurance calculator is a tool to determine the amount of insurance coverage you need. They use a combination of factors, including age and gender, your current coverage, your current and expected income, and other factors to estimate the amount of life insurance coverage you need. They can also help you decide which policy is best for you, depending on your current and expected needs.
The Calculator Should be Used After Taking the Following Into Account:
Table of Contents
- Add up all your bills, including credit card, auto, and mortgage obligations.
- Calculate ongoing clothing, food, utilities, transportation, and tuition costs.
- Consider future expenses such as tuition for the years throughout college.
- Subtract financial resources such as savings, investments, and other types of policies.
- Determine your ultimate costs for funerals, medical care, and estate settlement.
Advantages of Whole Life Insurance:
Most plans are recognized for paying out upon death. A cash value you can access while still living is an additional benefit of whole life insurance. You can carry out a few tasks with this financial worth. Generally speaking, you can obtain a loan. By enabling you to borrow money against your cash worth, an insurance company may occasionally be able to provide interest rates that are lower than those of a traditional bank.
Whole life insurance will last the rest of your life as long as your premiums have been made on time. No end dates are ever an issue since you get to maintain the same plan from when you buy it until you die. People like this feature since it ensures that their loved ones will always receive a death benefit, alleviating any worry about their financial situation when they need it most.
Benefits of Using this Tool:
1. Helps Understand the Performance of Assets and Investments:
It aids consumers in comprehending how permanent life insurance could be more effective than a savings account. You may use this whole life insurance calculator to compare the performance of other assets to savings and income plans based on the entire life. Clients may understand how investing in whole life insurance might support their long-term financial plan. They will be able to verify how whole life insurance outperforms term insurance and even savings accounts.
2. Assesses the Effects of Asset Diversification:
It assesses the effects of asset diversification for your clients using insurance. Show your clients the potential effects of the policy on their whole portfolio. They can have investments and whole life policies in place of one or the other. They can amass assets and make valuable savings with life policies, making the most of already-existing assets. The diversification calculator reveals the reality to them.
The Diversification calculator is sometimes used by advisers to show clients how shifting assets out of taxable accounts or extremely low-earning savings accounts may increase their spendable retirement income without jeopardizing the legacy they want to leave their descendants.
It Facilitates Customers’ Development of a Borrowing or “Personal Banking” Plan
It will help your customers comprehend what it entails and the advantages of owning their own “bank.” Because they can’t picture what it truly means to be their banker, clients can have trouble understanding cash value accounts and policy loans. You may use the Borrowing Strategy Calculator to demonstrate to them why using their whole life insurance is preferable to borrowing from other sources.
Whole life insurance has increased as more people purchase and use life policies for life planning needs. This calculator will help you understand the policy benefits of whole life insurance. The digital insurance quote tool is a great way to get a plan quote without leaving home.
Use this comparison tool to help determine how much life insurance you need. It compares the costs and benefits of different policy types. They can help you find the right policy for your needs and budget and compare the cost of living to a life insurance policy that works well for you.