Whole Life Insurance

If you’re considering purchasing life insurance, you may have heard folks talking about the benefits of whole life, but you’re not quite sure how it differs from the other types of life insurance. If you feel a bit overwhelmed, don’t worry, you’re not alone. In fact, with so many different kinds available, unless you work in the insurance industry, it’s easy to get frustrated. Take a few minutes to read about whole life insurance, how it differs from other insurance and whether it’s a good idea for you and your family. After all, you work hard and you want to make certain your family is protected with the best.

Whole Life Insurance: The Basics

Whole life insurance provides lifelong protection and not just for a specific amount of time like term life insurance. It’s unique in that it provides protection upon your death, but also while you’re alive. It’s a great way to ensure financial security for retirement, educational expenses or other unexpected financial strains in the future. Whole life has no end date and as such, with every premium payment, your policy gains in value. In fact, it gains a tax deferred cash value which you can borrow against or “cash out” years later. The cash value is basically a return on a portion of your premium the insurance company invested.

Cash Value Versus Face Value

It’s important to realize that the cash value of a whole life insurance policy is different from the face value of the policy. Cash value is the amount available to you if you decide to cash out the policy or “surrender” the policy before its maturity or your death. By contrast, the face value of a whole life insurance policy is the amount of money that will be paid out upon your death or at policy maturity.

A Wise Long Term Investment

Whole life insurance has a few very significant benefits and is a good choice for folks looking for financial security for long term goals. Particularly because a whole life policy matures over time, it can come in handy when faced with unexpected financial emergencies. Plus, in many cases, as your needs change, it’s often possible to add a rider or provision that lets you purchase additional insurance without having to prove “insurability” through medical exams.

Making the decision to buy life insurance is a challenging and often frustrating experience. Trust the experts at United Life Group to help you secure the most appropriate option for you and your family. With expert advice and knowledgeable representatives to help you, getting peace of mind is easy.