Benefits of Whole life Insurance

As the name implies, Whole Life is meant to insure someone for their whole life. Like universal life, whole life has a cash-value component. In most cases, in a whole life policy the premium and death benefit are fixed. Whole life also offers a savings account, or cash value, that builds up as the insurance company invests a portion of your premiums.

1. It is a permanent Insurance and guarantees pay out to beneficiary one day, when ever the insured happens to pass away. It removes the speculation that term policy has what if you out live that term of insurance, all your money invested into plan goes wasted, where as with whole life you have peace of mind that one day this contract will be honored.

2. Funeral planning or final expense planning is a good fit for whole life policy as we know that one day for sure money would be needed and this whole life plan would payout the coverage amount to the beneficiary that too 100% Tax Free.
3. Estate Planning – when estate is transferred from one generation to next; there are tax consequences, depending up to how much is needed, that can be worked out with accountant, whole life insurance policy could be bought so as your estate gets transferred fully to your heir without parting a major share to taxes.
4. Children or Grand children – that is another major reason why parents or grand parents buy policies to leave money behind to help their children go to university or help them buy first car, or first home down payment or marriage.

Whole life Insurance might be worthwhile if:

• You require more tax-deferred savings than you have available.
• You won’t need the savings in your life insurance policy for at least ten years.
• You can pay the premiums and get the coverage you need.
• You can find an affordable policy with good rates.

Advantages of Whole Life

There are no surprises with whole life. You have a guaranteed premium, interest rate, and death benefit for the life of the policy. The cash value also grows tax-deferred and also typically allows for withdrawals and loans against the policy.

For more information on Whole Life Insurance please call on tollfree no 1.800.283.5467

Benefits of Whole life Insurance

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