Whole life insurance is a type of permanent life insurance that offers lifelong protection, consistent premiums, death benefits, as well as a living cash value. With your whole life insurance policy, you are able to receive dividends to increase the value of your policy or death benefit.
Benefits of Whole Life Insurance
Your whole life insurance policy can come with many benefits, including:
- Lifelong protection that will never depreciate.
- Premiums that will remain constant.
- Tax-free dividends from your policy.
- A cash value that can build value over time, and add value to your policy.
- You can borrow against your cash value if you choose.
How It Works
Through your whole life insurance policy, you can build a tax-deferred cash value that can be added to your death benefit or can be taken out of your account to use. As with other forms of life insurance, to build your cash value and benefits, premiums need to be paid regularly. However, once you purchase your whole life insurance policy, your rates will stay fairly consistent.
Is Whole Life Coverage Right For You?
While there are multiple types of life insurance that are there to fits your needs, whole life insurance may be the best pick for you if you:
- Need guaranteed insurance for life.
- Have financial stability and can afford to pay consistent premiums.
- Would like to build your cash value by investing in a safe way.
- Want the freedom to access your cash value whenever you please.
- Prefer to have a guaranteed death benefit as long as premiums have been consistently paid.
If you think a type of whole life insurance policy would benefit you and your needs, speak with your First Life insurance agent to find the best-fit policy.