what is whole life insurance

What Is Whole Life Insurance?

Whole LIfe Insurance

Whole LIfe Insurance

  •  It is permanent life insurance. It does not expire as long as the premium is paid when due.
  • Whole Life Insurance is also called Cash Value Insurance, because it accumulates value over time. Term Life Insurance, on the other hand, expires at the end of the period and does not accumulate cash value.
  • In the event of the unexpected loss of the main breadwinner, the death benefit can replace the loss of income of the main breadwinner; it can also help with the mortgage payment; or to cover educational expenses; AND, it can leave a legacy for the next generation.
  • The cash value built in the Whole Life Policy grows tax deferred; …or if properly structured, it may NEVER be subject to taxation!
  • Whole Life insurance proceeds (as it is the case with all life insurance benefit proceeds) are generally income tax exempt for the beneficiaries.
  • The policy owner/insured can borrow against the accumulated cash values on a tax-free basis. Loans agains the policy do accrue interest and, if not paid at the time benefits are paid,  reduce the death benefits and cash value of the policy.
  • Whole Life policies are eligible to earn dividends as declared by the life insurance company; although dividends are not guaranteed.

The key to Whole Life Insurance is the guarantees it provides

  • 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. Your premiums will never increase, but may be reduced or eliminated.
  • Guaranteed Death Benefits – Knowing that a death benefit will be available to your heirs – no matter when you die – is the primary reason for purchasing a whole life policy. It provides financial protection to your family.
  • Guaranteed Cash Value – Combined with the potential for dividends, a guaranteed cash value makes whole life a unique product. For retirement planning purposes, the cash value illustrated in later years becomes more credible when guaranteed cash represents a significant portion of the asset.
  • Offers Dividends – When dividends are declared, they may be credited to your policy, further increasins the cash value and death benefit.

Whole Life Insurance, 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.

Different Product Choices

Whole Life Insurance

Whole Life Insurance

  • A low priced whole life option where the savings component and potential for dividends can assist with your long term cash accumulation goals.
  • A limited pay policy, where premium payments are made for a limited number of years, such as 10 years, at which point no additional premium payments are made.
  • Premiums paid to age 100 where the policy provides  a lifetime death benefit protection.
  • Policies paid up at age 65 (or 10 years after purchase, whichever is later) in order to maximize its savings and dividends to generate high cash value accessible through loans.
  • Limited Pay Life – Single Premium Life – Final Expense

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. If you would like to explore how Whole Life Insurance can play a significant role in your Retirement Planning,

  • call our Local Miami Number (786) 353-2528;
  • or call our Toll Free Number (888) 950-8376 (ENGLISH); or, (888) 510-1557 (SPANISH)
  • or click CONTACT US

Whole Life Insurance and the “Financial Gurus”

whole life insurance

Whole Life Insurance

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, and so that you may form your own opinion, please, visit the links that appear below:

Permanent Or Term Life Insurance; A Comparison – by OHIO NATIONAL FINANCIAL SERVICES

Buy-Term-And-Invest-The-Difference-SOCIETY-OF-FINANCIAL-SERVICES-PROFESSIONALS

Video: Suze Orman – TERM AND (WHOLE) LIFE INSURANCE COMPARISON

Video: Should I Invest In A Whole Life Insurance Policy? – MOTLEY’S FOOL

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Want to Find Out More If Whole Life Insurance is For You?

whole life insurance

Oscar G. Suris FL Agent (786) 353-2528

  • Call our Local Miami, Florida – Number (786) 353-2528
  • Or our Toll Free Number – (888) 950-8376
  • For a free personal consultation and/or to set up an appointment, click on Request Free Consultation.