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What are the benefits of whole life insurance?
November 29, 2021
If you are in the market for life insurance, you will quickly discover that there are different types. Each type of insurance has its purpose and benefits. In this article, we will discuss the benefits of whole life insurance.
The cost will stay the same
As long as you continue to pay your premiums, you will always pay the same amount for your insurance coverage. In the long run, it will make the insurance that much more affordable because the premiums won’t go up over time.
Benefits to your loved ones
Making a decision now about life insurance will set you, and your family, up for the future. Whole life insurance will provide a guaranteed benefit for your loved ones, so even if you are not around to provide for your family you know that they will receive a certain monetary amount. The amount they receive remains in place for your entire life and can even increase while you own the policy.
Return on investment
When you purchase whole life insurance from an insurance broker, you might be eligible to receive annual dividend payments from the insurance company. The payments, and the amounts, are not guaranteed but it’s a great bonus when you’re already paying the premium amounts every year. Depending on the year, and if the insurance company pays out a high amount in dividends, you may be able to actually get some money back from your premium payments.
Plan for retirement
One of the best things about whole life insurance is that it has a cash back part of the policy, and this can be a great part of planning for retirement. If you have had the policy for a decent amount of time you’ve probably been able to build a good cash value within the policy and that can be used in a tax-advantage manner for your retirement.
Withdrawing cash from this policy however, may influence the amount of money available to your beneficiaries – so something to keep in mind – but the money in this policy is protected from market fluctuations and may be tax-free when you’re taking it out.
Donate to charity
If you are passionate about a certain cause or charity, you can use your life insurance policy to leave a legacy. You will want to meet with your tax advisor or insurance broker to make sure this is set up properly and will truly benefit the charity you care about.
Do you have the right life insurance to meet the needs of yourself and your family? Whether you are considering whole life insurance or another type, the insurance brokers at InsLyf can help. Call us today to learn more.