4 reasons to choose whole life insurance for your family
When it comes to protecting the ones you love, you need something lasting that you can count on. Whole life insurance offers just that: steady coverage that consistently grows and is there when it’s needed most.
Could whole life insurance be right for you? Here are four advantages to consider.
1. Lifelong coverage
Unlike term life insurance, which expires after a set period, whole life insurance offers lifelong coverage as long as premiums are paid. This means your loved ones will receive a guaranteed death benefit no matter when you pass away.
2. Support for your loved ones
When you pass away, your policy’s death benefit will go directly to your chosen beneficiary, usually bypassing probate or any lengthy legal processes. This money can help ease your family’s financial burden at a time of stress, turmoil and loss.
Not only can benefits be used to pay your final expenses, including burial, but they can also help replace lost wages, supplement retirement income, and transfer wealth across generations.
3. Level premium rates
When it comes to whole life insurance, you don’t have to worry about surprise premium hikes. No matter your age, health, or changes in the economy, you count on your premiums to remain the same from your first payment until your last.
4. Cash value
Whole life insurance does more than just provide a death benefit. It also builds cash value over time that you can use. Every time you pay your premium, a portion of the money is set aside. This money grows over time at a guaranteed rate. Cash value growth is tax-deferred, meaning you won’t pay taxes on it while it builds.
Once enough cash accumulates, you can borrow against or withdraw it for any purpose—to help fund college, pay off debt or supplement your retirement income. Cash value loans often have lower interest rates than bank loans or credit cards, but keep in mind that unpaid loans can reduce your death benefit. Withdrawals may also reduce the death benefit and could be subject to taxes.
In many policies, any remaining cash value when you pass will be added to the face value of your policy, giving your loved ones more financial support when they need it most.
Want more? Check out our blog, Life insurance and the Hispanic American community.
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