Whole life insurance policies typically cost significantly more than term life insurance policies.
According to a Quotacy-based study conducted by Investopedia, the typical monthly premium for a $500,000 whole life insurance policy ranges from $247 for a 30-year-old female to $887 for a 60-year-old male.
In contrast, for the same amount of coverage, monthly premiums for term life insurance range from $25 for a 30-year-old female to $241 for a 55-year-old male.
Businesses can also use whole life insurance as a back-up plan in the event of the death of a key partner or employee.
A whole life policy can compensate for the loss of a key employee’s expertise or skills in the event of their death.
A whole life policy can provide the remaining owners with sufficient capital to purchase the deceased partner’s share of the business if the deceased was a part owner.
