Whole Life Insurance is exactly what it sounds like, a Permanent Insurance policy for your entire life. You and your beneficiaries will be in a permanent financial safety net till the day you pass away, or the term ends. It comes with a fixed premium, which means you won’t have to worry about variable rates now and then. Also, when it isn’t likely that you would opt to renew for another term. You see, for this type of plan, the term ends after 90 or 100 years. However, these shouldn’t be the only reason why you should opt for Whole Life Insurance. That’s why, to give you a clear understanding of what are the additional benefits that come with this policy, we have made a list below. Have a look.
The Cash Value:
Similar to permanent life insurance policies, whole life insurance also comes with a cash component which only accumulates over time. It is guaranteed to grow at a particular rate and can be used as an investment vehicle. Additionally, this component is also tax-sheltered throughout its lifetime.
You can withdraw the cash component at any time and can use it in:
However, you will have to keep in mind that it will deduct the loan amount from the death benefits if you borrow against the cash value and then pass away.
Let’s talk dividends:
If you’ve opted for a dividend-paying whole life insurance policy, there is a chance of a dividend cash-out in case the insurer performs better than expected. As a policyholder, you will be able to participate in the company’s profits after they have paid all death benefits and other business expenses.
No medical exams:
Generally, medical exams are not a component of life insurance policies, but they are always in the underwriting. However, choosing a guaranteed acceptance whole life insurance means you will have the option to skip detailed health questions and the medical exam.
Complete life coverage:
To reiterate, with whole life insurance, you get a policy for the entirety of your life. You can add your family member or any dear one as your beneficiary, and as long as you can pay the premium, you will reap the policy’s benefits.
These are to name a few; however, if you’re still not convinced about whether you should apply for this policy, contact Harpreet Puri. She’s an experienced insurance broker and can help you with your queries.