When you buy life insurance, you enter into a contract with an insurance company that promises to provide your beneficiaries with a certain amount of money upon your death. In return, you make periodic payments, called premiums. The premium amount is based on factors such as your age, gender, medical history, and the dollar amount…
PROTECTION AND PEACE OF MIND FOR YOUR WHOLE LIFE
Whole Life Insurance From Priority Life!
Whole Life Insurance offers lifelong protection, but it can do much more. Whole life insurance can give you:
Lifelong coverage to protect your family from financial loss
Level payments that are guaranteed to never change
A guaranteed death benefit
An option to build cash value
“If a child, a spouse, a life partner, or a parent depends on you and your income, YOU NEED LIFE INSURANCE”
WHAT IS WHOLE LIFE INSURANCE?
Whole life insurance is a type of permanent life insurance. It’s also the most common, according to the Insurance Information Institute. Like most permanent life insurance policies, whole life offers a savings component, called “cash value,” and life-long protection — as long as premiums are paid, whole life provides a death benefit after you die.
WHAT ARE THE BENEFITS OF WHOLE LIFE INSURANCE?
Certain aspects of whole life insurance can make it an appealing choice.
Your premiums and death benefit are fixed.
You can withdraw funds or take out a loan.
You have a guaranteed rate of return.
FIXED PREMIUMS AND DEATH BENEFIT
In most cases, the premium and death benefit stay constant for the duration of a whole life policy. (A universal life insurance policy, on the other hand, may offer the option to adjust your premiums or death benefit.)
With fixed premiums and a fixed death benefit, you won’t have to worry about cost increases as you get older, and your loved ones will know the amount of life insurance proceeds to expect when you do pass on.
A whole life policy can serve as a source of emergency funds for you if something goes wrong; you are able to take out a loan against the policies death benefit. That’s because a portion of each of your premium payments is funneled into a savings component of the policy called the “cash value.”
Over time, the cash value builds, and you’re able to withdraw funds or borrow against it. The rules on how and when you can do that vary by company and policy. There are guidelines to follow, so that you don’t inadvertently reduce the death benefit or create a tax burden. In addition, The cash value of a whole life policy is guaranteed to earn a minimum amount of interest.
GUARANTEED PROTECTION AND GROWTH
HOW MUCH DOES WHOLE LIFE INSURANCE COST?
The cost of a whole life insurance policy depends on several factors, including how much coverage you buy. Additionally, factors such as your age, health and life expectancy may affect the premiums you pay for whole life.
When it comes to paying your premiums, you’ll typically be able to make an annual payment for a whole life insurance policy. Some insurers may also offer the option to pay monthly, quarterly or bi-annually.
ARE WHOLE LIFE INSURANCE PREMIUMS TAX DEDUCTIBLE?
According to the Internal Revenue Service (IRS), you cannot deduct premiums you paid for a whole life insurance policy on your tax return.
However, if your beneficiaries receive the death benefit from your whole life policy, they likely would not have to pay federal income taxes on that benefit. (But, any interest earned on top of the death benefit is considered taxable income.)
WHO MIGHT CHOOSE WHOLE LIFE INSURANCE?
So, when might a whole life policy make sense for you?
A whole life insurance policy might be a fit for someone who likes predictability over time, since whole life offers death benefit guarantees, guaranteed rates of return and fixed premiums. You will want to talk it over with a Priority Life agent and review other options before you make any decisions. That way, you can be confident you’ve chosen the life insurance policy that’s suited just for you.
Get a Whole Life Insurance quote.
All situations are different, so its important to determine the right amount of coverage for your specific needs. Working with an experienced Priority Life agent can help you come up with the ideal plan for your needs and family.
Monthly Income? According to a recent survey, most Americans would choose a monthly income of $2,700 a month for life over a lump sum retirement payment of $500,000. While 62% of Americans say they’d opt for a lifelong monthly check, only 32% of participants say their retirement plan offers that option. And of those who…