Unlike term life insurance, whole life insurance is permanent. It definitely costs more but it is designed to provide coverage for your entire lifetime. A well-designed whole life insurance policy has more to it than just a death benefit. Here are the things you can get with a whole life insurance policy.
- Your Money is Protected
- Your Cash Value Grows
- Dividends are Not Taxable
- Get Additional Income
- Access Your Cash Value
- Insurance for Life
Whole life insurance has a cash value that is guaranteed to be there, even if the stock market crashes. Mutual funds and other program values are depicted by the market. With whole life insurance, you won’t lose the money you invest.
Your cash value will grow based on interest rates driven by the economy. But regardless of whether the economy has tanked, your cash value will still grow every year. If you want stability and guarantees that your money is safe, then a whole life insurance policy may be right for you.
Dividends are not guaranteed, but many life insurance companies do pay out dividends. The amount of the dividend depends on several things, but mainly how much profit the life insurance company made that year. When the dividends are paid to a policy owner, they are not taxable.
Depending on your whole life insurance policy, it can be converted into an annuity, providing you with additional income. This option is not available with all carriers, so if this is something you are interested in, ask your broker to help you find a policy with this option.
A whole life insurance policy allows you to borrow money from your cash value anytime and pay it back later. There are no penalties for borrowing money, unlike 401(k)s or IRAs.
With a term life insurance policy, you are only covered for a certain amount of time and will likely have to purchase another type of life insurance later. Whole life insurance guarantees that you are covered for your entire lifetime.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.