What does whole life insurance mean?
Whole life insurance represents the most prevalent form of permanent life insurance, offering continuous coverage throughout one’s lifetime. In the event of the policyholder’s passing, beneficiaries receive a tax-free payout known as the death benefit. Additionally, the policy includes a cash value component that accumulates interest, providing the policyholder with the ability to borrow against it or make withdrawals.
Whole life insurance serves as an excellent choice for individuals who possess significant assets, operate a family business, or bear the responsibility of long-term dependents. For the majority of families, term insurance typically proves to be the most suitable selection. However, some individuals may find it beneficial to consider obtaining a smaller whole life policy in combination with term insurance.
Whole life insurance comes with several appealing attributes:
- It remains effective regardless of changes in your health.
- Premium rates remain constant, irrespective of your health status.
- It guarantees the growth of cash value over time.
- Some policies may offer dividend earnings based on the insurer’s annual profits.
Given these advantageous features, it’s essential to be aware that whole life insurance generally comes at a cost 10-15 times higher than term life insurance. Each premium payment contributes to the accumulation of cash value, which grows at a predetermined interest rate. Once this cash value reaches a certain threshold, you can access it through policy loans to supplement your retirement income or for any other purpose you desire.
In the event of your passing, as with other life insurance policies, your insurer pays out the death benefit to your designated beneficiaries. This lump-sum payment can assist them in covering expenses such as funeral costs, outstanding debts, and other financial obligations, allowing your loved ones to maintain their current lifestyle.
Is whole life the same as permanent life insurance?
Whole life insurance is a specific category within permanent life insurance. Permanent life insurance encompasses a collection of policies designed to provide coverage for your entire lifetime, in contrast to term life insurance, which offers coverage for a specified number of years.
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Why purchasing whole life insurance?
For the majority of individuals, term life insurance suffices to safeguard their loved ones against unforeseen circumstances. Nevertheless, adding a smaller whole life policy to the mix can prove invaluable for those with intricate financial requirements.
You might want to contemplate whole life insurance if you:
- Possess a substantially large estate.
- Are a owner or executive of a family business.
- Provide long-term care for dependents.
The advantages of whole life insurance reach far beyond lifelong coverage. Additional benefits comprise:
Dividends
By opting for a participating policy, you become eligible to partake in the annual profits of the company and have the freedom to use those gains according to your preferences
Builds Cash Value
Your policy is guaranteed to accrue interest at a fixed rate based on its cash value, which you can leverage for borrowing purposes.
Death Benefit
The individuals you’ve chosen as your beneficiaries will receive a tax-free lump sum that they can utilize at their discretion.
How does whole life insurance work?
Whole life insurance remains active as long as you consistently make premium payments.
Here’s what you can anticipate when you initiate premium payments:
- Pay your fixed-rate premiums promptly.
- A portion of each payment is allocated to grow your cash value, distinct from the death benefit.
- When your cash value accumulates sufficiently, you can access it through loans or withdrawals.
- If you opted for a participating whole life policy, you may also receive dividends tied to the insurer’s yearly investment returns and claims history.
Purchasing whole life insurance through The Ascendum Group is a simple process. Begin by filling out our brief online questionnaire, and one of our licensed agents will contact you to discuss your choices and offer a personalized quote. Here’s an overview of what the whole life insurance buying process entails with us:
- Complete the questionnaire and receive a quote.
- Have a conversation with an agent to assess your coverage requirements.
- Apply for whole life insurance coverage.
- Your agent will assist you through the purchase procedure.
- Decide whether to accept the offer (you are under no obligation to accept).
- Initiate your premium payments, and you are officially insured.
Buy whole life insurance online with The Ascendum Group
The distinctive advantages of a whole life insurance policy provide assurance that your family will be financially secure when you’re no longer here. This is genuine peace of mind.
We firmly hold the belief that everyone requiring life insurance should be able to access it, without exceptions. Safeguard what’s important to you and request a whole life insurance quote today.