Whole Life Insurance

Understanding Whole Life Insurance

A major distinguishing factor between the different life insurance types is the duration in which policyholder is covered for. There are two different types of life insurance, term insurance and whole life insurance. Whole insurance is a type of permanent cover on a person’s life.  This insurance is cannot be terminated when you fall ill, or if your health begins to deteriorating. Whole insurance policyholders have the option to pay either in installments, (monthly or annually), or pay a lump sum.

One of greatest advantages of whole life insurance type, is that it never expires. Furthermore, whole life insurance providers pay dividends to policyholders every year, which in most cases is not tax deductible. Moreover, a policyholder is entitled to a cash withdrawal of any accumulated cash value.  This cash value withdrawal is considered tax free. Most importantly, when a policyholder passes away, the beneficiaries named in the policy are paid for the final value of the premiums. Beneficiaries are therefore able to live a financially secure life, even with the loss of their loved one.

Life Insurance Types

The insurance industry covers a variety of life insurance types. Examples include whole life insurance, universal whole life insurance, variable life insurance and term life insurance. The different types are characterized with both benefits and drawbacks. Before taking out a life insurance policy, it is important to determine your financial goals for the sake of your beneficiaries. Once this has been assessed, check to be sure that your preferred life insurance type meets your financial goals. Another factor is the duration in which the policyholder is covered for. For instance, while whole life insurance is a cover for the entire life of a policyholder, term life insurance only protects his life for a specified time period.

Variable life insurance is one of the best life insurance. It is a form of permanent life insurance that also offers the ability to invest your stock in a variety of accounts such as a mutual fund.

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Whole Life Insurance

Life Insurance for Seniors

Premium amounts are determined by several factors, such as the health conditions of a person. For instance, where a person is suffering from a chronic illness, the amount paid is usually higher. Another crucial factor is age. Older members typically pay a higher premium at the end of the day.

It is also important to note that life insurance types also provide life insurance for seniors. As a senior, the premiums are typically more expensive. This should, however, not discourage an older person to take out life insurance. This is because certain life insurance types are inherently less expensive. Furthermore, seniors need not take out so much because they typically have fewer financial obligations. You, therefore, should accept the cheap premiums that life insurance offers.

Variable Life Insurance Benefits

  • Life time fixed premiums
  • Encourages long term savings
  • Tax-free Death benefits
  • Is an investment option
  • Wide range of investment options
  • Market participation in investment decisions
  • Tax-free investment earnings
  • Ready withdrawal options
  • Easy cash withdrawal options
  • Flexible premiums payments
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