What is Whole Life Insurance?
Whole life insurance, a type of permanent insurance, is ideal if you want to protect your beneficiaries while accumulating cash value. With whole life insurance, you are buying a policy that pays a fixed amount at the time of death, but a part of your premium goes towards building investments. This means that over time you will build cash value that can be applied towards a paid-in-full life policy or borrowed against it.
Benefits of Whole Life Insurance:
The primary advantage to choosing whole life insurance is that you will have protection for life.
Some additional benefits to consider:
- The rate you pay for your policy will never increase
- Cash value growth that is not subject to stock market declines
- A source of cash in a financial crisis
- Guaranteed death benefit
- Tax advantages
Drawbacks of Whole Life Insurance:
Picking the right type of life insurance is important for you and your family, be sure to weigh the pros and cons to see which policy best fits your needs.
Some drawbacks to consider:
- Expensive premiums
- Could be costly if coverage lapses early
- Mediocre investment returns
Who Might Choose Whole Life Insurance?
Whole life insurance most benefits those who like predictability over time. You can rest easy knowing that you and your family are protected for life. Commonly people start thinking about life insurance after major life events such as starting a family, buying a house, or getting married. The sooner you start planning for life insurance the better so when you are ready to buy you fully understand your options.
Things to Consider Before Purchasing Permanent Life Insurance:
- Review your insurance needs – speak to one of our trained agents who can give you the information you need to make an informed decision.
- Review and assess your current life insurance policy
- Be sure that you can afford to pay the premium payments
- Understand the renewal policies