As you can see, whole life insurance is much more expensive than term life insurance. But whole life insurance also includes features that the term does not have.
Whole life insurance covers your entire life (hence the name). Unlike life insurance which is temporary.
Whole life insurance policies also accumulate cash value. You, as the policy owner, can borrow against this cash or withdraw it to use as you wish. But keep in mind that whatever amount you take as a withdrawal or insurance loan will reduce the death benefit. And, like any other typical loan, the balance accrues interest.
When does $100,000 in coverage make sense?
A $100,000 life insurance policy makes sense for those who are on a tight budget but still want to ensure that their loved ones are protected from the unexpected.
A $100,000 life insurance policy makes sense if you have a large amount of savings, little debt, and want to provide money for your end-of-life expenses.
A $100,000 term life insurance policy makes sense if you increase the policy and this policy is for a specific protection goal.
For example, you and your spouse have purchased a home with a 30-year, $300,000 loan. You have a teenager graduating high school next year and want to support her through college. You can purchase two different life insurance policies that are specific to ensuring that your family can remain in their home and financially protect your child.
A 30-year, $350,000 term life insurance policy will provide the money your spouse needs to continue paying monthly living expenses if you die before the mortgage balance is paid.
A 10-year, $100,000 term life insurance policy will provide the money your family needs to support your daughter through college and her young adult life until she is financially dependent, even if you die and cannot physically be there to see her through itself.
A $100,000 whole life insurance policy makes sense if you need lifelong protection for your loved ones. Perhaps you have a non-working spouse or a child with special needs. If you’re not sure how long people will trust you, whole life insurance can be a good option.
A $100,000 whole life insurance policy also makes sense as a supplement to a larger life insurance policy. Buy enough life insurance to cover all your debts and financial responsibilities. And choose a length long enough to protect your family until all or a majority of your debt is paid. Then also buy a small whole life insurance policy to cover expenses at the end of life and leave a small inheritance.
Is $100,000 Life Insurance Enough?
A $100,000 term life insurance policy may not be enough for some people. And you may be surprised at how affordable higher amounts of life insurance can be.
The difference in cost between a $100,000 and $250,000 life insurance policy can be as little as $2-3 per month. How much safer would your family be with an additional $150,000 if you died unexpectedly?
I encourage you to use our life insurance quote tool and play around with coverage amounts and terms. See for yourself how affordable life insurance is.
If you’re looking to supplement whole life insurance, a $100,000 whole life policy is a good amount of permanent coverage. Not all families need permanent life insurance, however.
Buy what you can afford. $100,000 of life insurance is a million times better than no life insurance.
Can I get $100,000 life insurance without a degree?
Many companies offer no-degree options for small amounts like $100,000 life insurance. In fact, many of the companies we work with here at Quotacy have no graduation options up to $1,000,000 in life insurance coverage.
Buying $100,000 in whole life insurance coverage without a degree is a bit more difficult, unless you’re guaranteed lifetime coverage, but these policies have limited benefits and are more expensive than traditional whole life.
Contact Quotacy and speak with an agent directly to learn about your options for purchasing whole life insurance without a degree.
In most cases, you must be in good health to qualify for non-degree options. However, not all life insurance companies underwrite in the same way, so some have more lenient qualification requirements than others. If you prefer to skip the medical exam, your agent will let you know if you qualify.
If something happens to you, life insurance can help financially protect the loved ones you leave behind.
Our life insurance needs calculator can help you determine what coverage you need. Check this out: life insurance calculator.
If you prefer to speak to an advisor to determine how much life insurance you need, contact us directly here at Quotacy. Our agents are happy to go over your needs, but won’t pressure you into buying coverage you don’t need.