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Whole Life Insurance
Many Americans pay life insurance premiums and only think about the
monies their families will receive as a “death” benefit. However,
a significant advantage of Whole Life Insurance is that it can provide “living” benefits
as well, while still offering the typical protections most associated
with life insurance plans. If you are considering Whole Life Insurance
coverage, pay special attention to these “living” advantages.
Many times, Whole Life Insurance is compared with Term Life Insurance
on price, while the added advantages are often overlooked.
It is important to understand that Whole Life Insurance is considered
permanent, as opposed to Term Life Insurance, which is considered temporary.
With a Whole Life Insurance policy, a portion of your monthly premium
payment goes towards a “cash reserve” that can grow tax-deferred
over time. These cash reserves are generally accessible for future expenses
such as retirement, the purchase of a house, or to finance the education
of your children.
Whole Life Insurance Trends
Modern society has influenced the Life Insurance industry and changed
the way we think about these plans. Today, consumers want the freedom
to customize their coverage, are looking for investment-type returns,
and want tax policies to favor these products. With employers reducing
life insurance coverage for their employees and with gaps existing in
government programs, more individuals are purchasing coverage on their
own.
Life expectancy in the United States has increased dramatically over
the last century. As Americans live longer, healthier lives, Whole Life
Insurance policies are impacted. Your age, the amount of coverage, and
your health status are important factors that will help determine the
final cost for premiums. In general, purchasing a plan when you are young
and healthy will tend to give you a lower rate. Therefore, it has never
been more important to start a plan early in life to ensure affordable
coverage.
Whole Life Insurance Options
Typical plan options:
- Participating/Mutual - If your priority is to have
an investment position with the insurance company, consider the Participating/Mutual
option. It is sometimes referred to as a “with-profits policy” because
the insurance company may pay dividends to the policyholders. These earnings
can be taken in cash, used to reduce the premium, kept with the insurance
company to accrue interest, or used to purchase more insurance. All other
general policy provisions are usually the same as non-participating/stock
plans.
- Non-Participating/Stock - To transfer a greater level
of risk to the insurance company, consider the Non-Participating/Stock
alternative. Although premiums may be higher, all factors related to
the policy (e.g., death benefit and cash surrender value) are established
up front when the policy is issued. They cannot be altered by either
side at any point in the future. The insurance company assumes all future
risks and does not share its profits.
If Whole Life Insurance fits your financial goals, we can customize
a plan to fit your needs. At Peoples Health Insurance, LLC, we specialize
in Estate Planning, Key Man Life Insurance Contracts, and Business Agreements.
We provide competitive quotes from a number of the leading Whole Life
Insurance companies. No one should allow financial uncertainty to diminish
one’s future when quality Whole Life Insurance protection is widely
accessible.
Whole Life Insurance
Who should consider a Whole Life Insurance policy? If you do not
have coverage, need more due to life changes, or want the added certainty
that your premiums will eventually accumulate into an investment,
Whole Life Insurance may be right for you. Ideally, applicants should
be in relatively good health and must be able to budget a reasonable
amount towards the premium cost. A number of benefit options and affordable
plan premiums are available from leading carriers. It is important
that you buy a policy early in life so the cash reserves within your
policy have the maximum amount of time to accumulate. Note: Certain
plans may not be available in all areas.
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