The insurer will review all your medical records and application materials to determine the amount you'll pay for coverage. You're protected for life once you sign the policy paperwork.
Whole life insurance is more common than term life and it costs more. Most policies offer coverage that can last a lifetime and payouts no matter what time you die. Whole life insurance has a cash-value component. A portion of your premiums gets paid into the account. It grows over time. Once you have enough cash, you can borrow against your account or surrender your policy to get cash.
The policy payout is the same as a term-life insurance policy. As long as your premiums are paid, the death benefit amount is transferred to your beneficiaries as a lump sum that is not subject to tax. The death benefit will be paid in cash by some whole-life policies that are more expensive.
You have the option to choose how much money, or the death benefit.
For people who have specific circumstances such as high-earners who require additional investment vehicles or those with dependents for life, whole life coverage is the best option.
You can choose how much money to leave your loved one, also known as the death benefit.
The cash value: This account accumulates interest over time. You have the option to withdraw from it or make a loan against. This investment is not as rapid as a regular investment but can grow steadily and be tax-deferred. The normal breakeven point (when cash values exceed cumulative premiums paid), can take between 10 and 20 year. So, the older you get, the less it makes sense to buy a new policy with cash value.
A whole life policy will offer you quotes that are based on your ability to pay your premiums until the age of 65 or 99. Most people purchase whole life insurance policies which will be paid monthly or annually up to the time they die.
We're available to assist you in any way you need, no matter if you are ready to purchase whole-life insurance or simply want to learn more. Our agents will walk you through the process, answer your questions, and help to compare quotes so that you can choose the best option for you.
If you wish to leave a financial legacy, a whole-life policy can help provide for your family and favorite charity organization.
The cash value is the amount of interest that this account earns over time. You can take out or borrow money against it. Although it will not grow as fast as standard investments, it is an easier, tax-deferred way to invest. The breakeven point, when cash value exceeds cumulative premiums, can take between 10-20 years. Therefore, if you're older, it might make less sense to purchase a new cash-value policy.
For most people, whole life insurance does not offer the right mix of low returns and high coverage. Some people prefer a full policy to a shorter term. This is why: Your entire life covered, Guaranteed return on cash value, Tax-deferred option and Cash value earns interest.
We'll be covering your whole life. Here's how it works.