Call us for a Quote: (855)202-6755

Whole Life is the #1 way to protect your family
Whole Life insurance – it seems you either love it or hate it. There are more benefits to a Whole Life policy. You will also end up paying a bit more for it than you would a term life policy. Whole Life is a permanent type of insurance.
If you are in your late 30’s or early 40’s this option may be appealing to you. It gives you a cash aspect that will grow over time. It also offers you a living benefit, whereas, if you live to be of age 100 or more, you can use the cash value for living expenses. Today, most policies stipulate that, in order to use the living benefit you now have to be age 121. In my opinion, that is not realistic for the average person.
The drawback to that? When you die, the payout will be the face amount minus the cash you used for living expenses.
Example:
If you had a $150,000 Face Value Policy and $50,000 in Cash Value accrued. You used all $50,000 to live. Your family would get $100,000 in benefit payments. Also minus any unpaid premiums.
Another perk of having the cash value in a whole life policy is – you can borrow from it in emergent situations. For example: hospitalization or damages to your home). The Insurance company will allow you to borrow from your policy to help cover those expenses. Keep in mind you will have to pay it back with interest.
There has never been a better time to get Life Insurance!
There are pro’s and con’s to whole life insurance policies and with other types as well. A Pro would be when you pass, your spouse or child will get the Tax free death benefit payment. The cash value grows in a tax deferred state. Meaning, you don’t pay taxes on it until you reach the specified age to use your living benefit.
On the opposite side – if you die before you are age 100 or 121, your family still gets paid the face amount of the policy. But what happens to the cash that has built up? If you haven’t guessed by now, it is used toward your face amount payout. If your face amount is $100,000 and your cash value is $50,000 then you will get your cash value and the insurance company will pay your family the other $50,000. This has been a topic of debate for some time.