Life Insurance
Life insurance is to protect your family and those who depend on your financial support. Life insurance provides a payout to your beneficiaries if you pass away but there is also more benefits you can receive as well. Reach out today to get more information on the benefits of having life insurance.
Type of Life Insurance Policies
What is Whole Life Insurance Policy?
Whole Life insurance policies offer two primarily benefits: a guaranteed death benefit paid to your beneficiaries when you pass away and a cash value that can be withdrawn or borrowed during your lifetime. A Whole Life insurance policy is a type of permanent life insurance that protects your family and loved ones when you pass away.
Does Your Monthly Payment Change?
Whole Life insurance policy covers your entire life, unlike Term Life insurance that only provides coverage for a period (typically 10, 20, or 30 years) Whole life insurance is a permanent policy. If you continue to make premium payments, you’re covered for life. Your whole life insurance policy is based on fixed premiums, meaning the payments you make to maintain your policy will never go up.
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Whole Life is a Financial Tool:
One of the benefits of Whole Life insurance is that some of portion of the money you pay for your premium contributes to the cash value. The cash value portion is guaranteed to grow, so if the stock market goes up or down, the cash value is insulated from these fluctuations. You can withdraw or borrow funds from your cash value for any reason, including to buy a home, cover education or health care expenses, or supplement your retirement income. When you borrow against your cash value, the money you withdraw isn’t taxed as income. The cash value growth in your policy is tax deferred, so you don’t have to worry about paying taxes on it every year. At death, the policy death benefit is income tax-free to your beneficiaries.
What is Term Life Insurance?
Like a whole life insurance it is a policy that protects your family and loved when from any financial difficulties they may face If you pass away. A Term life insurance policy is an agreement between you and a life insurance company: You agree to pay a premium for a specific period.
The term can vary from 10, 20, or 30 years, in return the insurance company guarantees a death benefit payment to your designated beneficiary listed on your insurance term life insurance policy.
Difference between Whole Life & Term Life Insurance?
One of the main differences between whole life insurance and term life insurance is term life insurance policy only provides coverage for a specific period and doesn’t have a cash value component. After the term is over there is no value or payout to your beneficiary. This is a great life insurance policy for young healthy individuals. Term Life insurance has the highest death benefit amount per premium dollar and is affordable.
