FREE INSURANCE Solid Goals for the FutureWhole life insurance provides the happy solution to the delicate matter of un unhappy death. In sickness and in health, we care and provide for our families. And at the end of that time, a whole life insurance policy can help you to continue to provide for them after you’re gone.
But whole life provides for your family in a very unique way…because with whole life, your premium payments become more than just a payment. They accrue and become a cash value account. And with this you can provide for yourself and your family.
How Do Whole Life Insurance Policies Work
Whole life insurance is a permanent life insurance…meaning it lasts your entire life. In most cases, the premium amount does not change, and the death benefits stay the same. Even if you have serious health problems. While it costs more than term life insurance, it’s still the most popular kind of individual life insurance in America today.
When you sign for a whole life insurance policy, you agree upon the premium payment, and how much of that payment will contribute to the cash value of the policy. As you get older, the premiums stay the same or increase according to what you agreed regardless of your age or health conditions. The cash value of a whole life insurance policy continues to grow. And all this time, your death benefit (the amount they’ll pay your beneficiary at the time of your demise) stays the same.
What Can I do with the Cash Values of a Whole Life Insurance Policy
The cash value of a whole life insurance policy is there for as long as the policy is in effect. You can withdraw the money and use it for anything. But withdrawing the cash decreases the death benefit.
The best way to use the cash value is to borrow against it. You can use this money for anything from paying off other loans to education funds. Borrowing the money also allows you to continue deferring taxes on the cash value (it’s taxable when you withdraw it.)
How Long Do I Pay the Premiums on a Whole Life Insurance Policy
On most policies, you continue to pay the premiums on a whole life insurance policy for as long as you live. Companies also offer the option to pay a lump sum in the beginning (creating an immediate cash value to the policy) and then make smaller premium payments throughout your life. You can also choose to pay a larger lump sum, without paying any premiums at all. Whole life insurance with modified premiums is a policy where the premiums incrementally increase as you grow older.
With any whole life insurance policy, everything is clearly defined when you purchase the policy. This includes the premium amounts, death benefits, and the amount of premium that contributes to the cash value.
Whole life insurance is about setting and meeting financial goals. When people depend on your financial decisions, whole life makes sense.
Talk to your Insurance Agent to ensure Whole Life Insurance is right for you!
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