What is Whole Life Insurance?
Whole life insurance is a type of life insurance that provides a death benefit to your beneficiaries when you die. However, it also has a cash value component, which is money that accumulates over time and can be accessed by you while you are still alive.
This cash value can be used for a variety of purposes, such as:
- Paying for college or other major expenses: The cash value of a whole life insurance policy can be used to pay for college tuition, a down payment on a house, or other major expenses.
- Retirement income: The cash value of a whole life insurance policy can be used to generate retirement income. You can either withdraw the money from the policy or use it to purchase an annuity.
- Tax-free growth: The cash value of a whole life insurance policy grows tax-deferred, which means that you do not have to pay taxes on the interest or dividends that it earns.
- Guaranteed death benefit: The death benefit of a whole life insurance policy is guaranteed, even if you outlive the policy. This means that your beneficiaries will receive the death benefit, no matter what.
The living benefits of WL insurance can make it a valuable financial tool. However, it is important to remember that whole life is a long-term investment. You should only purchase a whole life insurance policy if you are confident that you will be able to afford the premiums for the life of the policy.
Here are some additional things to keep in mind about the living benefits of whole life.
Offers coverage for the rest of your life and includes a cash value component that lets you access into it while you are alive.
WL have more than just a death benefit. In fact, while life insurance is primarily about a death benefit for the people who depend on you, it can also become an important part of a financial plan in place through the benefits life insurance can provide while you’re alive.
Whole Life Never Expires.
As as you pay the premiums, your death benefit will never expire. Will be paid regardless of death whether tomorrow or in 80 years.
Premiums On WL Policies Stay The Same.
Premiums are the monthly payments that you make to insure a company to pay for your policy. Whether you have Whole or Life you will be required to pay premiums.
Whole Life Insurance Builds Cash Value
Cash value is the primary living benefits of whole life insurance. A portion of every premium payment you make will be added to you cash value.
Whole Life Policies Earn Dividends.
In addition to guaranteed cash growth. most life insurance companies pay out dividends. While you can take dividends as cash or use them to pay a portion and or all of your premium, most people reinvest the dividends into their policies. But do not necessarily have to.
Find the best policy for you with one of our experts at LIFE143.