Need Permanent Life Insurance Coverage? We Can Help
Permanent life insurance is called many names, like universal life, variable universal life, and whole life. Permanent insurance offers long-term financial protection. These policies have a death benefit and sometimes cash savings. Due to the savings part, premiums are often higher.
Whole life insurance pays a death benefit when you pass away — even if you live to be 100. This can provide peace of mind and protect your family from financial ruin during a very emotional time.
There are three main types of whole or permanent life insurance and there are deviations within each type.
The Types of Permanent Policies
The most common type of permanent insurance is whole life. It offers a death benefit and a savings account. If you go this route, you’re agreeing to pay premiums, regularly, for a specified death benefit.
This option gives you more flexibility than a whole life policy. If you pass a medical exam, you may be able to increase the death benefit. The savings method — known as a cash value account — typically earns interest at a money market rate.
Variable life insurance mixes death protection with a savings account, which allows you to invest in stocks, bonds, and mutual funds. The pro is that your policy’s value can grow quicker. The con is that you have more risk.
This kind of policy combines the features of variable and universal life policies. You get the investments risks and rewards aspect of variable life joined with the ability to modify your premiums and death benefit that’s equivalent to universal life.
The Benefits of Whole Life Insurance
- Stable premium
- Renewable coverage
- Tax-free death benefit
- Customize your policy with riders
- Access your money through loans
How Does Whole Life Insurance Work?
Every time you pay your premium, a little amount is put aside, which grows over time as the policy’s cash value.
The longer you have the policy, the more cash value it builds. If a need comes up, and if premiums are paid, you may borrow against the cash value that’s available — giving you financial protection.
- You determine how much you need
- You can use your money when you need it
- The policy pays a death benefit to your beneficiary(ies) when you die
Why You Should Purchase Whole Life Insurance
When you buy a permanent life policy, you get lifelong protection. It pays a death benefit if you pass away tomorrow or live to be 100! There’s also a savings component that will grow, tax-deferred, and may become significant over time.
One thing about whole life insurance is that the premiums stay the same, whereas the premiums for term life can increase by a lot each time you renew your policy.
In a whole life policy, the cash value isn’t the same as its face value amount.
- Face amount = money that will be paid at death.
- Cash value = amount of money available to you.
You can use the cash savings in many ways. For example, you can take out a loan or give up the policy before you pass away to get the accrued savings.
Note: The interest rate for cash value growth is fixed.
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Who Should Purchase Whole Life Insurance?
If you want permanent coverage, whole life insurance may be suitable for you if:
- You have lifelong dependents
- You have a diversified portfolio
- You’ve already drained your retirement accounts
- You’re fairly young and have a high income
- You want to pass money onto your family
Why You Should Work With Us
Working with a licensed agent is the best and quickest way to get the right coverage for your situation. We have years of experience working with folks like you, so we understand the type of life insurance you deserve.
Get the Whole Life Insurance You Need
Don’t leave your family unguarded without life insurance. By contacting us at All Things Insurance, you can get your loved ones the protection they need if you pass away unexpectedly. It’ll help them avoid the stress that comes with having to pay funeral expenses and keep their footing while they grieve your loss. Contact us to start a policy.