What is Whole Life Insurance?
Whole life insurance provides a guaranteed benefit for final expenses as long as premiums are paid on time.
What is the difference between Whole Life and Term Life Insurance?
The main difference between term life and whole life insurance is the length of the policy. With term life, the insured chooses a length of time for the policy to last. If the insured dies during the time period of the policy the beneficiaries receive a death benefit. With whole life, the insured is covered for life and rates will never increase as long as premiums are paid on time. Whole life insurance also builds a cash value over time. There are many advantages to both term and whole life insurance and choosing the better option varies, depending on a person’s unique needs.
Below are some of the differences in policy features:
Does Whole Life Insurance have a cash value?
One of the benefits of whole life is a tax-deferred cash value that builds over time with the policy.* The cash value can be accessed any time as a loan. The face amount of the policy will be reduced by any outstanding loans.
Are Whole Life benefits taxable?
Death benefits paid from whole life insurance are not subject to federal income tax.*
What are some benefits of Whole Life Insurance?
Some of the benefits of Whole Life coverage are:
- A Guaranteed Death Benefit
- Tax-Free Cash Value Accumulation that builds as premiums are paid*
- Portability at the same rate
- Immediate claims payment
- Payroll-deducted premiums
- Waiver of Premium for Disability
- Competitive Group Rates