Whole Life Insurance
Whole Life Insurance
What Is Whole Life Insurance?
Whole life insurance provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. These policies are also known as “permanent” or “traditional” life insurance.
Understanding Whole Life Insurance
Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly due premium payments. Meaning, the premiums can never increase, and the face amount of the coverage can never be decreased. Insureds have the peace of mind that their coverage will always be there when their family needs it the most.
The policy also includes a savings portion, called the “cash value,” alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis. Growing cash value is an essential component of whole life insurance. The cash value offers a living benefit to the policyholder. In essence, it serves as a source of equity. To access cash reserves, the policyholder requests a withdrawal of funds or a loan.
Key Takeaways:
Whole life insurance lasts for a policyholder’s lifetime, as opposed to term life insurance, which is for a specific amount of years.
Whole life insurance is paid out to a beneficiary or beneficiaries upon the policyholder’s death, provided that the premium payments were maintained.
Whole life insurance pays a death benefit, but also has a savings component in which cash can build up.
The savings component can be invested; additionally, the policyholder can access the cash while alive, by either withdrawing or borrowing against it, when needed.
Assurity Benefits Group offers several types of Whole Life products that may fit your specific needs and financial goals call or email to see which type of Whole life is best for you.