Whole life insurance in depth

Tuesday, August 01, 2023 05:00 AM - Comment(s)

Whole life insurance in depth

What is whole life insurance?

Unlike term life insurance that protects you for only a specific duration, whole life insurance offers protection throughout your lifetime.

It’s the most basic type of permanent life insurance that offers consistency along with some predetermined, guaranteed cash value growth.

What can it offer?

In addition to lifetime protection, whole life insurance offers a unique combination of benefits to help meet your needs, including:

Consistent premium payments

Whole life insurance is typically more expensive than term life policies, but the premium amount is fixed for the life of the policy.

Consistent cash value growth

Your whole life insurance policy receives guaranteed cash value growth.

Tax-free death benefit

The payout your beneficiary receives if you die is typically tax-free and has a steady value throughout the life of the policy.

Policy customization

You can customize a whole life insurance policy with a variety of optional features for an additional charge.

Your premium payments remain the same over the life of the policy, and a portion of it goes toward the insurance, which includes any fees and death benefit coverage.

A small amount from each payment is also set aside to build up your predetermined, guaranteed cash value.

With this policy, you can borrow against the cash value if needed. When you pass away, an income-tax free death benefit is paid to your beneficiaries. Keep in mind that borrowing against the cash value will reduce the death benefit paid to your beneficiaries, though.

Who may benefit from whole life insurance?

Whole life insurance is designed for people who are looking for:

A policy that lasts your whole life
Premiums that stay consistent over time
A guaranteed, tax-deferred cash value with a fixed rate of interest over time

Could whole life insurance be right for you?

See how it compares to other types of life insurance (e.g., whole life vs. term life) to get a better idea of whether it meets your needs.

How to buy whole life insurance

You need to work with an insurance professional at Annuity Pros to buy this type of product.We are here to help.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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