Whole Life Insurance

Permanent life insurance, also known as whole life, provides lifetime coverage. It is more expensive than term life because it:

It last for the extent of your life.
Typically, builds cash value.

The cash value component accumulates on a tax-deferred basis over the life of the policy. It acts as a savings portion of the policy. Typically, you can borrow against the policy’s cash value or make a withdrawal. If you decide to end the policy, you can get the cash value minus any surrender charges. In some policies the cash value may build slowly over many years, so do not count on having access to a lot of cash value right away. Your policy will show the projected cash value.

There are several varieties of permanent life insurance

Whole life insurance offers a fixed death benefit and cash value factor that grows at a guaranteed rate of return. Many whole life insurance policies pay out dividends that reduce premium costs or can add to your cash value.

Universal life insurance frequently gives more flexibility than a whole life insurance policy. You may be able to adjust your premium outflows and death benefit, within certain limits. With a universal life insurance policy, the cash value will build condition alto the plan category. For example, an indexed universal life insurance policy will have cash value tangled to an index such as the S&P 500.

Burial insurance is a small whole life policy with a minor death benefit, often between $5,000 and $26,000. Funeral insurance intended to insure only memorial charges and concluding expenditures.

Survivorship life coverage or “second to die life insurance” insures two people underneath one policy, generally a married couple. If both spouses have passed away, the policy pays out the death benefit to the beneficiaries. Usually, survivorship life insurance is part of a larger financial plan to fund a trust or pay central manor duties.

Which one is suitable for you? At D Ellis & Associates, we are offering tailor made options as per your needs and requirements; you can get in contact with us through our contact page and we will reach out immediately.