Do You Really Need Whole Life Insurance?

You may have asked yourself whether you need a whole life insurance policy or not.

Before you make this critical decision you must first understand what whole life insurance is and what it entails.

You should also get to learn about the different whole life insurance benefits.

If you need those answers then you are at the right place.

Whole Life Insurance

This is simply a life insurance policy that will remain in force for your entire lifetime provided all the premiums are paid or until its maturity.

It is, therefore, a binding contract between you and the insurance provider.

The insurance company you choose will pay your beneficiaries upon your death.

Compared to life insurance, you will most definitely pay higher premiums.

The good news, however, is the fact that the premiums don’t increase with age once you start paying them.

One clear-cut fact you need to understand is that once you get a whole life insurance cover, you cannot revoke or cancel it except if you defer payments.

Whole Life Insurance Benefits

Dividends

Many insurance providers will give you dividends.

The best part about it is that they won’t be taxed since IRS considers it as a return of premium.

This is a tax advantage that is quite beneficial to you and you end up getting the most from your money.

Acquire loans

You could actually use the cash value of your whole life insurance to borrow money.

You could also use it as a collateral to acquire loans from third parties.

You will clearly get a good loan and you have a good solid collateral that lending companies cannot ignore.

Constant Premiums

It is critical to take whole life insurance when in good health and at a young age.

Your premiums will be calculated at that time and will never increase over time and when your health deteriorates.

The whole life insurance benefit of constant premiums is one clear reason why you should take the policy now.

When you delay acquiring whole life insurance, then you may end up paying significantly higher premiums than normal.

Additional Income

You need to understand that whole life insurance can be exchanged for an annuity.

The best part is that it is not liable for any tax penalties according to IRS Section 1035.

You should, however, consult a professional financial advisor before you make this step.

Secures your family’s financial future

Upon death, all proceeds go to your beneficiaries and the money can go a long way in helping them.

Death is a sudden catastrophe and you need to ensure your family will remain financially stable.

This whole life insurance benefit is crucial when you are the breadwinner in your family.

Getting whole life insurance is your choice and personal decision.

It is a good policy to help you secure your future and the future of the people you love.

If you can afford the payment of the premiums, then I highly recommend it.

The future is pretty much unstable because we don’t know what to expect.

It is therefore critical that you plan ahead and secure it.

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