About Whole Life Insurance
Whole life insurance is permanent life insurance. It does not expire as long as the premium is paid when due. Whole life insurance is also called csh value insurance, because it accumulates value over time. Term life insurance, on the other hand, expires at the end ot the period and does not accumulate cash value.
The key to whole life insurance is guarantees.
- Guaranteed Premium Payments. Unlike other types of cash value life insurance, you can be sure that the cost of your policy is fixed from the moment you buy it.
- Guaranteed Death Benefits; Knowing t hat a death benefit will be available to your heirs – no matter when you die – is the primary reason for purchasing a whole life policy. and
- Guaranteed Cash Value, which combined with the potential for dividends, make whole life a unique product. For retirement planning purposes, the cash value illustrated in later years becomes more credible when guraranteed cash represents a significant portion of the asset.
Whole life, which is also called Cash Value Life Insurance, is life insurance for the whole of life. With its lifetime guaranteed cash value, guaranteed premiums and guaranteed death benefit, no other financial product provides such lifelong security.
Whole Life Insurance and the “Financial Gurus”
Despite these qualities, some consumer finance “experts” in the news media have criticized whole life because it costs more than term life or universal life for the same amount of coverage. Despite being one of the most misunderstood of all financial products, whole life has worked for families and businesses for more than 200 years. Compared to term life insurance, whole life has higher premiums. But it also delivers more, the same way a car costs more than a bicycle; both vehicles can get you where you want, but a car offers more utility for the money. Form more on this you can click on Term to Perm to visit our post on this topic.
Whole Life Insurance and Retirement Planning
Whole life can be a surprisingly versatile financial tool, with ongoing cash accumulation and instant liquidity through policy loans. It can even generate tax-favored retirement cash flow. And, it ultimately pays a death benefit that is free of federal and state income tax.
Want to Find Out More If Whole Life Insurance is For You?
While the INSURANCE GLOBE PARTNERS site is primarily dedicated to TERM LIFE INSURANCE, to SENIORS LIFE INSURANCE and to FINAL EXPENSE LIFE INSURANCE, it is appropriate to also talk in here about whole life insurance. After all, term life insurance is life insurance purchased to meet a temporary need. It will expire when its term ends and to renew it at that point becomes very expensive. Also, if the insured’s health has deteriorated, renewal of the policy after expiration may not even be an option. Therefore, when one is looking for life insurance, whole life should not be automatically excluded.
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