What is Whole Life Insurance?
Whole life insurance is a great life insurance product. Our life insurance agents are very skilled in whole life insurance and explaining all the benefits of this great type of life insurance to our clients. Whole life is an excellent life insurance product because it offers premiums that don't change for the life of the policy, and the policy also includes an accumulation of cash value. Whole life insurance provides life insurance protection to you and your loved ones in the case of a death. This excellent protection is the main reason to have life insurance. You want to ensure that your family with be financially protected no matter what happens in life.
Great Benefits of Whole Life Insurance
Whole life insurance also has several other great benefits, besides being a life insurance policy that make it an even more useful insurance tool. If life dishes out an emergency that creates the need for extra cash flow like a job loss, illness, home improvement emergencies, and other situations, you can borrow money against the guaranteed cash value of the life insurance policy. The money is borrowed at the current borrowing rate. Another great benefit is that the cash value that is part of the whole life insurance policy is allowed to grow tax deferred according to current federal income tax law. This means you don't pay taxes on any of the growth that occurs on the cash value in the policy. Another great feature of whole life insurance as already mentioned is that the premiums stay constant during the entire life of the policy. This means your premiums never increase.
Whole Life Insurance Pays Dividends in Profitable Years
Due to the cash value that is part of whole life, these policies can actually make extra money for you in certain instances and also provide you with the life insurance protection you need. In profitable years, whole life insurance can pay dividends on growth in the guaranteed cash value side of the policy. The dividends are only paid in years that the company is profitable. Keep in mind the dividends are not guaranteed. The life insurance in the policy always lasts for as long as the policy is in force.
Whole Life Insurance Great Tax Benefits
As already mentioned, the cash value growth in a whole life insurance policy grows tax deferred. When the policy benefit is finally paid out, the death benefit is generally also tax free when paid out to the beneficiaries. Our company has excellent whole life insurance quotes available.