Benefits of Whole Life Insurance

Get the reassurance that your loved ones will have what they need with term life insurance.

Whole Life Insurance is also referred to as permanent life insurance.

It is a life insurance policy designed to last your entire life and can also build cash value that you can borrow against in some cases. The premiums tend to cost more than a term life insurance plan because of the permanent nature of the insurance but there a many benefits to this type of insurance plan. The whole life Insurance cash value tends to be high but the payments are given a chance to grow in a tax deferred account at a fixed and established rate. Premiums are also fixed and won’t increase over time and the death benefit is certain, regardless of the time frame. This feature helps the policy to function more as an investment vehicle and the death benefit amount usually reflects this. Typically the death benefit in a whole life insurance policy yields a large outcome. Here at RightAway Insurance our experienced brokers can walk you through the advantages of whole life vs term life Insurance as well as advantages of term life in certain scenarios and situations over Whole Life Insurance.

How does whole life Insurance work? Your whole life Insurance rates are determined by your age , medical history, current health, and coverage goals whether you want to accumulate cash value to borrow against for example to fund a business, purchase a home or for emergencies or your principal focus is to just have a death benefit that will allow your loved ones not the be burdened at the time of your passing these factors allow us to work together with you to pick the most appropriate policy. There are several payment options monthly, Quarterly, or Biannually.

What are the other factors in my whole life Insurance policy? A portion of your premium payments are put into an investment account to grow throughout the life of the policy. When the plan ends the accrued cash value will be paid out to a beneficiary of your choosing. If however you name the beneficiary as an irrevocable life Insurance trust you may also Lower the tax liability however you should consult your accountant before assuming any tax benefits.

There are many benefits to having a Whole Life Insurance policy. Your premiums are consistent and will not fluctuate or increase regardless of inflation, market conditions or any other factors unless you want to increase the cash value of your plan. The death benefit is guaranteed to be paid to your beneficiary once the coverage ends as long as you were up to date with your premiums. Your policy builds cash at a constant rate tax free in a secure account you also do not choose a term length as this coverage is designed to last your whole life. You may be Able to access the cash value of your plan before it expires.