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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