Who Are You Leaving Behind?

The Benefits Of Choosing A Whole Life Insurance Policy

When purchasing life insurance, you will need to choose between a whole life and a term life policy. While both of these insurance products have their own unique benefits, many people ultimately find that purchasing a whole life insurance policy is the more beneficial option. Continue reading to learn more about some of the impressive benefits that whole life policies have to offer. 

Guaranteed Payout And Premiums

Whole life policies remain in effect for your entire life as long as you continue to pay your premiums. This means that no matter when you die, you can be sure that your policy will pay a death benefit. With term life policies, this death benefit is only paid if you die during the term covered by your policy.

In addition to the guarantee of a death benefit, whole term life insurance policies also offer you guaranteed premiums for the rest of your life. This means that you will never need to worry about the cost of your premiums increasing.

Living Benefits

While the primary reason that people purchase life insurance is for the death benefit that they provide, whole life policies also offer you the ability to enjoy some impressive benefits while you are still alive. For example, whole life policies will build cash value over time. This cash value can be borrowed against if you ever find yourself in a difficult financial position, This cash value is accrued using a small portion of your monthly premiums. 

In addition to the cash value you receive from your monthly premium, a whole life policy may also pay dividends. These dividends can be issued to you in the form of a cash payment or can be used to offset the cost of your premium. 

Tax Benefits

A whole life insurance policy offers you several ways in which you can enjoy a tax break. For instance, the death benefit that your dependents will receive at the time of your death is not taxed. You are also able to enjoy access to the cash value of your policy without paying taxes as long as you pay back the money according to the terms of your policy. 

When receiving dividend payments on your policy, you have the ability to enjoy this extra income tax free by simply choosing to apply the payments to your premiums rather than having the company issue you a check. This is a very easy and convenient way to save money on your insurance costs and avoid paying additional income taxes at the same time. Look into an agency like Banks Life & Health Agency for more information.