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Whole Life Insurance

Whole Life Insurance

Whole Life Insurance, is the most robust type of permanent insurance.
This type of coverage can include (Final Expense, Key Man, and other Cash Value Life Insurance Policies)

Whole Life Insurance provides the insured with peace of mind that they have coverage from the date of issuance that is irrevocable with limited exceptions.
Whole life requires policy premiums to be paid in order to keep the policy in force unless the policy is paid up at its maturity date.
The premiums for a whole life policy are fixed and guaranteed never to change over the insured’s lifetime.

Whole life policies are used to cover funeral expenses and are a part of estate planning.
The proceeds of the death benefit are paid to the beneficiaries on a tax-free basis unless the contract becomes a matured endowment. (The insured outlives the maturity date of the contract)
Whole life policies accumulate cash value which can be used during your lifetime to pay for certain expenses by utilizing the loan function.

Advantages:

  • Permanent at issue.
  • Cash Value Accumulation
  • Potential Dividend payments (If issued by a Mutual Insurer)
  • Tax-Deferred growth on your cash value
  • Loans available against cash value as long as the policy remains in force.
  • Several different additional riders to augment and enhance the protection of the policy

Disadvantages:

  • Higher Cost of Premium
  • May require full medical underwriting
  • Liquidity
    • The premium requirement may create a cash flow burden for those with fixed income.
    • Contributions can create a cash flow issue for the life of the policy.
  • Surrender Charges & Fees
    • Early termination may result in loss of principal for single premium policies.
    • Termination of a policy can trigger tax consequences on any earnings.
  • Loans
    • Loans against policy cash value reduce any death benefit.
    • Loan interest accrues starting day 1 of the loan until the loan is paid in full.

Contact Us today for final expense planning and all of your whole life needs.