Traditional Life Insurance

WHOLE LIFE

Whole life insurance, also known as “permanent insurance,” involves coverage effective for the entire life of the policyholder. A whole life policy pays a death benefit when the policyholder dies, regardless of his or her age.

Key Characteristics:

• Provides a fixed amount of life insurance coverage and a fixed premium amount.
• Benefits are payable upon the death of the insured or on the maturity date- often the policyholder’s 100th birthday.
• Coverage can increase only with the purchase of an additional policy, or, if available, through additional riders or dividends.
• Policy coverage is provided for life.
• Premiums are paid at a fixed rate throughout your lifetime, if the policy remains active.
• The cash value accumulates from premiums paid and increases over the years.
• The earnings (for tax purposes) include only the amount accumulated in excess of the premiums paid. You may owe taxes on such earnings if you surrender the policy. In most cases, you will not owe taxes on the earnings if you do not surrender the policy.
• Policies with cash values include provisions that allow you to take out loans on your policy for up to the amount of the cash value. The loans accumulate with interest, but repayment is not required prior to death. If you die and the loan has not been repaid, the insurance company deducts the owed amount, plus interest, from the death proceeds paid to your beneficiary.

Other Common Characteristics

• If you miss a premium payment, the company can draw from the cash value to keep the policy in force, but only if such a provision is included in the policy or the insured has given prior authorization.
• You may elect to stop paying premiums and use the cash value to continue the policy at a reduced level of protection, or the contract may let you continue the policy as extended term insurance for a specified time.
• You can use the cash value to buy an annuity that provides a guaranteed monthly income for a specified time.
• You may use the policy as collateral to borrow from the insurance company or bank.
• You may assign the accumulated cash value to the lender

Want to find out more about available Whole Life Insurance Plans? Call or use our online contact form to request an in-home appointment to get your questions answered.