The name says it all: whole life insurance protects you for YUR whole life. And, before you say “isn’t the point of life insurance to protect you for life?”, the answer is complicated. To make it simple, not all policies are the same. And, whole life is the only policy option that protects you forever.
Many people understand that they need life insurance to financially protects their family and assets. Let’s begin with what is whole life insurance and what is term life insurance. Whole life insurance is designed to provide financial protection for people or organizations you care about in the event of your death at any age. Term life insurance provides coverage at a fixed rate for a limited period of time.
We’re here to help you to assess what policy is right for you. Here are some of the main points you need to know about whole life insurance coverage.
Whole life insurance usually costs more because it includes extra savings called cash value. The cash value is a savings account that comes from a percentage of your premiums.
There’s one premium, forever.
Even if you keep the policy for 100 years, the benefit to a whole life insurance policy is that the premiums are guaranteed to remain the same. This means that your insurance company can’t raise prices as you get older as long as you keep making payments.
There are a variety of living benefits.
The money you pay into the policy through your premium will be invested. This means you acquire dividends or interest on your cash value as time goes on your cash value will grow. You are also able to borrow against your whole life insurance policy.
Want to discuss what life insurance option may be right for your unique situation? We are happy to help you analyze the various term and whole life policies available so that you can make the best decision for the future of your loved ones.