The average inheritance for most Americans is about $46,200. With whole life insurance, your family could get much more than that. If you pass away, your beneficiaries receive a death benefit that they can use to pay off debts, cover funeral costs, or provide financial security for their future.
So, if you’ve been searching for “whole life insurance near me,” you’re probably curious about how this type of policy differs from other insurance types. Read on for the benefits of a whole life insurance policy.
Permanence
Whole life insurance offers guaranteed renewable coverage as long as you pay the premiums on time every year. Suppose your health changes later in life, and you can’t continue making payments on your whole life policy. In that case, your insurer will convert your policy into an accumulation account so that all the money invested can still grow and be used for emergencies.
Cash Value
By paying your whole life insurance premium every month, you’re putting money toward building cash value in the policy. A portion of each month’s premium goes toward a fund that protects the value of your policy. You can use this money for emergency medical bills or supplement retirement.
When you pass away, that cash value passes directly to your beneficiary without having to go through probate court. This means they will receive their inheritance quicker than if they were dealing with an estate.
Indexed universal life insurance also has a death benefit. However, unlike whole life insurance, the insurer invests the cash value into stocks.
Fixed Premium
When you get whole life insurance, your monthly premium will stay the same throughout your policy term. Besides being affordable, fixed premium policies are also easier to qualify for because they require fewer health questions on your application.
Borrowing
Another significant benefit of whole life insurance is that you can withdraw or borrow from your cash value. The cash value is essentially a savings account for you, where your premium payments go. If you need money for any reason at all, you can use this money without having to pay income tax on it.
There are fees associated with withdrawing and borrowing from your cash value. However, they’re less than what other investment options would charge.
In general, life insurance companies will allow you to borrow up to 90% of the cash value of your policy. Your death benefit will decrease with each withdrawal.
Whole Life Insurance Near Me: Choose the Best Policy
A whole life policy will never become obsolete, and there are no term limits or exclusions. You can be certain your loved ones will be provided for in the future because you’ve chosen to protect them with an investment that builds cash value.
While you’re waiting for your Google search for “whole life insurance near me” to lead you to a great insurance company, read articles in our money and business section for other ways to invest your funds.