Coverage That is There For Your Whole Life
What is “Whole Life”?
Well, just like with “Term” insurance, “Whole Life” lives up to its name. It’s designed to be there for you, you whole life.
“Whole Life” is a life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured (the “death benefit”). The investment component accumulates a cash value during the life of the policy that the policyholder can withdraw or borrow against. A “whole life” policy can be viewed as an asset or an investment in that regard.
As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred.
We cannot really just throw out a number as to how much life insurance coverage is right for you, and your family. We cannot tell you even what % of that amount maybe should be “whole life” and what percentage should be “term”. We can however provide you with a general ballpark idea as to how much you may consider based upon various variables in your life, such as; how much debt you carry? how much of a mortgage do you have currently? What kind of colleges do you want for your children, and what kind of box do you want to be buried in? Stuff life that. If you would like to get a ballpark idea, try our CalMoolator on the right.
A Form of Whole Life: Universal Life
A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance) which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder’s circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.
A form of permanent life insurance, Variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the most expensive type of cash-value insurance because it allows you to allocate a portion of your premium dollars to a separate account comprised of various instruments and investment funds within the insurance company’s portfolio such stocks, bonds, equity funds, money market funds and bond funds. In addition, because of investment risks, variable policies are considered securities contracts and are regulated under the federal securities laws; therefore, they must be sold with a prospectus.
“Final Expense” Life Insurance