WHOLE LIFE INSURANCE

Whole Life Insurance is a permanent type of life insurance. This means that the coverage amount stays in place for the whole of your life as long as the premiums continue to be paid. Even in the event that you are to become uninsurable due to a decline in health for example, the policy would continue to remain in force. However, you must initially be insurable in order to obtain life insurance. This is why, is it important to obtain life insurance at an early age and in good health. It is also important to note that the cost to purchase life insurance increases with age.   

With whole life insurance the premiums always stay the same. During your working years, the death benefit serves to protect your loved ones in the event of death by replacing your income, paying off all debts, including your mortgage. After you retire the same benefit provides your heirs with a tax free inheritance that if required can be used to offset estate taxes, children’s or grandchildren’s education costs, and the costs of final expenses.

Whole Life insurance also has a feature known as cash values. The cash values can at the time of retirement be used to pay for your future premiums, thereby ensuring that your police stays in force without your having to pay premiums out of pocket during your retirement years.

Whole life insurance is an excellent choice for children and grandchildren. At younger ages, the costs are much lower and the future benefits are potentially much greater than if purchased later in life. Many people have difficulty purchasing life insurance on their children or grandchildren. They do not want to feel as if they are benefiting from a tragic event. It is much better to think that you are purchasing life insurance not on them but rather for them. The cash values that will accrue in their whole life policy will serve as a benefit to them for their future financial needs, such as education funding, down payment for a purchase of a home, or anything else that requires as immediate cash need to give them a head start in life. It also establishes insurability for the remainder of their life. The premiums for children, being significantly lower can be fully paid up in just 10 to 20 years, depending on the insurance company.