Choosing a Life Insurance Policy

Choosing a Life Insurance Policy

In an often uncertain economy, financial planning is more and more necessary. As people sit down to plan for the future, they sometimes neglect to consider life insurance which can leave loved ones at a disadvantage. While there are a variety of plans to choose from, only a Whole Life insurance policy is permanent.

Benefits of Permanent Coverage

Whole Life policies last the entire life of the policy holder. They have no termination date like other policies which require renewal at the end of a designated period of time. Here are some of the benefits of carrying Whole Life insurance coverage:

  • Fixed Premiums: the cost of Whole Life coverage remains the same right up to the maturation date.
  • Fixed Death Benefit: the amount of money beneficiaries receive at the time of death is guaranteed.
  • Cash Value: the policy accrues cash value at a guaranteed rate. Once that value reaches a certain point, policy owners can withdraw money from the value, borrow against the value or cash out the policy entirely.
  • Dividends: In some cases, whole life policies earn dividends which can be applied toward payment of premiums.

With Whole Life insurance, prices and coverage remain the same until the policy matures, then payments cease and the insured owns the policy.

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