What Is Whole Life Insurance?

Understanding Permanent Whole Life Insurance 

Whole life insurance is a protection that’s built for you for the rest of your life and accrues a cash value. 

In addition to providing a death benefit, a whole life insurance policy will accrue a cash value that can be used later for purpose like low interest loans. Whole life insurance policies are typically more expensive than term life insurance. Part of the premium payment goes towards funding the death benefit and the other part goes into the investment pool that builds the cash value. 


“The best time to get whole life insurance is to lock in low rates when you’re young and healthy.”- Paul Cercy

Reasons to Buy Whole Life Insurance

There are many different reasons to buy whole life insurance. Buying whole life insurance is considered long-term financial legacy building, while term life insurance is built for short-term financial protection. Here are a few reasons to consider buying whole life insurance: 

01

End of Life Preparation 

One of the most common forms of whole life insurance is final expense insurance. These policies are typically simplified whole life insurance policies that are used to pay for expenses related to end of life, burial, and cremation services. Most carriers offer a maximum benefit amount of $30,000 to $50,000 depending on individual criteria. 

02

Wealth Building & Tax Planning

Whole life insurance can be used to build wealth by funding it with tax advantaged cash and will help you build a financial asset to pass down generational wealth to your loved ones. 

03

Get Guaranteed Insurance for life

The best time to get whole life insurance is to lock in low rates when you’re young and healthy. Once your whole life policy is in force and you continue to maintain the premium payments, you’ll have guaranteed insurance for the rest of your life-no matter what you’re diagnosed with later on when you are older. 

  

04

Access your cash at any time

When compared to things like 401(k)s and IRAs, whole life insurance policies have a lot less obstacles, rules, and penalties to accessing your cash before retirement. If you use your cash value like a personal bank, you can avoid the interest and fees you’d normally pay to big banks. Imagine how much in fees and loan interest you’d save!

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