A whole life policy is the oldest type of life insurance which offers guarantees on a couple different levels. First, the death benefit is guaranteed, second the premium is guaranteed and last, the cash value is guaranteed.
Whole life insurance may pay dividends to you or you can have them paid back into the policy.
You can also design the policy with other options as well depending on the company. This is a simple explanation.
President, Lane Independent Agency, Southern California
Gee whiz. Where do I start? There is just so much it can provide. Number one, of course, is a death benefit with a premium that will never increase. Then it will accumulate value and increase in the death benefit. You can borrow against it while the value increases, and if you decide, you can keep that money tax free. You can use that money to fund college, or to buy a home, or, as many do, to retire on. All the while keeping the policy in force, and although reduced, it still has a death benefit. Discuss your needs with a caring and qualified agent. Gary Lane, Registered Representative and Agent, New York Life, 949 797 2424. Thank you.
Insurance Advisor, Lordship Insurance Services, California
There are benefits to owning a whole life insurance policy.
1) Premiums never go up. They stay the same for the life of the policy
2) They accumulate a cash value. As you continue to pay premiums your cash value increases
3) You can borrow against the cash value. Its like borrowing money from yourself. You get no payment book or notices for repayment. You pay it back when you want to, if you want to.
4) Level death benefit - will pay the face amount of the policy upon your death
5) Some allow you to add additional riders - these can enhance the provisions of your policy.
6) Can be used as collateral - with a sufficient cash value you can actually use that value as collateral for a loan outside of the one your insurance company can provide. It will depend on the circumstances.
Whole life insurance can be a great tool to protect your family from unexpected expenses.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A whole life insurance policy guarantees to pay a death benefit to your beneficiary in exchange for premium deposits from you. Regardless of how it does its work, it is an efficient and time tested product that delivers the money when it is needed. Almost everything in a whole life policy is guaranteed.
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Whole life insurance may pay dividends to you or you can have them paid back into the policy.
You can also design the policy with other options as well depending on the company. This is a simple explanation.
1) Premiums never go up. They stay the same for the life of the policy
2) They accumulate a cash value. As you continue to pay premiums your cash value increases
3) You can borrow against the cash value. Its like borrowing money from yourself. You get no payment book or notices for repayment. You pay it back when you want to, if you want to.
4) Level death benefit - will pay the face amount of the policy upon your death
5) Some allow you to add additional riders - these can enhance the provisions of your policy.
6) Can be used as collateral - with a sufficient cash value you can actually use that value as collateral for a loan outside of the one your insurance company can provide. It will depend on the circumstances.
Whole life insurance can be a great tool to protect your family from unexpected expenses.