Whole Life Insurance

Whole Life Insurance

Whole Life Insurance is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date. There are many types of whole life policies, but the oldest and still the most common type of whole life policy is ordinary level premium whole life insurance, or simply ordinary life. Whole life policies have a living benefit, and a tax-sheltered cash account that builds up inside. You do not pay taxes on the gain each year, and that money can be used in retirement to supplement retirement planning.

Many people think whole life is simply to protect their mortgage, car loan and any current debt, but it is foremost to protect the income your family is anticipating from them.

A Whole Life Insurance policy offers both insurance protection and an investment opportunity. Throughout the life of the policy, the insured can withdraw or borrow funds for investments or purchases. This benefit is over and above the peace of mind knowing that if the policy holder dies, the plan will pay out in full.

Other benefits are as follows:

  • Often referred to as the Cadillac of Life Insurance because it offers the most protection
  • Grows steadily over the course of the policy holder’s lifetime
  • Has a guaranteed ROI of 4.5%-6.5%
  • Policy can written on a couple, resulting in a larger death benefit. Individual policies are equally beneficial
  • The most efficient way to transfer money from one generation to another without a tax liability.

Lifetime protection includes:

  • Level premiums to age 100.
  • Tax-deferred growth of cash value.
  • Death benefits generally pass on income tax-free to your beneficiaries.
  • Cash values can be accessed during the insured’s lifetime.
  • Eligible to earn dividends; however, dividends are not guaranteed.

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