Whole Life Insurance
A whole life insurance policy is permanent insurance that lasts your entire lifetime and never expires, unlike term life policies. It offers cash value like most other permanent policies, which accumulates on a tax-advantaged basis. Such policies are better known as traditional life insurance policies.
Whole Life Insurance Explained
Whole life insurance will provide your beneficiaries with a guaranteed death benefit as long as you continue to pay your premiums, which will keep your policy active. This death benefit will be provided to your beneficiaries after your passing, and can be used to cover funeral expenses, medical bills, and any other costs that might come up or already existed before or after your death.
As mentioned previously, these policies also have a cash value that can be accessed by you, the policyholder. You can borrow against this cash value. However, unpaid loans and withdrawals decrease a policy’s cash value and death benefit.
Advantages of Whole Life Insurance
There are several advantages that come with a whole life policy:
• Fixed premiums don’t change even with shifts in market conditions
• Your beneficiaries have a guaranteed death benefit if you keep up with the premium payments
• You can access your policy’s cash value
What Does The Cash Value Do?
Your policy’s cash value gradually increases, allowing you to borrow against it or make withdrawals. Your policy allows you to take out loans from the cash value and use them as needed, such as for emergency funds if something goes wrong.
Whole Life Insurance Pricing Factors
While these policies have fixed premiums, they are often more expensive than term life or universal life policies. The following factors can contribute towards your insurance’s cost:
• Gender and age
• Weight and height
• Your medical history, including current and past health conditions
• Dangerous activities and hobbies like rock climbing or piloting planes
Learn More About Whole Life Insurance With Family First Life Insurance
It isn’t easy to choose a life insurance policy that best suits your needs, budgets, and plans. I understand this dilemma. That’s why I am here with all the relevant details about life insurance policies so you can make an informed decision and be satisfied with your choice.
For more details, contact Family First Life Insurance, LLC today!
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