What Is Whole Life Insurance? Most people are familiar with whole life insurance. For many years, whole life policies were the predominant type of life insurance sold in America. When you purchase a whole life policy, you traditionally pay a fixed premium for as long as you live or for as long as you keep the policy in force. In exchange for this fixed premium, the insurance company promises to pay a set benefit upon your death. In addition to providing a death benefit, a whole life policy can build cash value, which accumulates tax deferred. Part of the premium pays for the protection element of your policy, while the remainder is invested in the company’s general portfolio. The...
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“Should I buy Whole Life Insurance” Transcript - Is Whole Life Insurance Right for You? I almost guarantee that you have been contacted by a salesman at a company like Northwester Mutual, New York Life, or Mutual of Omaha to buy a whole life policy. There is a reason for that, they are incredibly profitable. The problem is, they are profitable for the salesman! Whole life is a permanent type of insurance. It will provide a death benefit not matter how long you live, as long as the premiums for the policy are being paid. However, there is much more to whole life than a simple death benefit. These are often advertised for the cash value that builds up over time, which the policy holders can...
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Whole Life Insurance Policies Life insurance policies fall into two categories: Term and permanent. Term life insurance policies are purchased for a specified amount of time. The term can range from as few as two to as many as 30 years, depending on the age of the insured. Permanent policies, on the other hand, are purchased to cover the insured for his or her entire life. Whole life insurance policies are a type of permanent life insurance. That is, they cover the insured for his or her “whole” life. Permanent life insurance policies have what is known as a “cash building” feature. The premium that is paid by the owner of the policy is applied toward two separate parts of the policy. The...
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Borrowing against Whole Life Insurance: What to Consider If you have a whole life insurance policy, you might reach a point where you want to borrow against it. What exactly does that mean? To borrow against a whole life insurance policy means to take out a loan from it. Some benefits of doing this typically include being offered a fixed premium for the duration of the policy, guaranteed annual cash growth, and a guaranteed death benefit. How Does Borrowing Against a Whole Life Insurance Policy Work? A whole life insurance policy doesn’t expire, as long as the premium is paid. In other words, it will last the lifetime of the insured. The money that’s paid into the policy gets invested by...
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At RMR Insurance Agency, we offer services varying from Medicare Supplements to Medicare Advantage to Life Insurance to Medicare Part D. We are a small family-oriented business located in the heart of central New York but we service all of New England. Insurance Products: Medicare Supplements: These plans are standardized by medicare. Each plan covers different services so you choose the plan that best fits your life. You will need both Medicare parts A...
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Whole Life Insurance Whole life insurance refers to a life insurance policy that is valid for the insured’s entire life. In most cases, whole life insurance requires the payment of premium every year. In Commonwealth of Nations, whole life insurance is known as whole of life assurance. Initially, all life insurances were temporary insurances. However, these term life insurances only paid claims on premature death within the stated term. This meant that policy holders paid premiums to insurance companies for 20-30 years and in most cases wound up with nothing to show for it. Facing intense market pressure actuaries came up with an insurance policy that required level contributions that would...
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In the weeks to come, we’re going to examine some of the top questions associated with whole life insurance. It doesn’t matter if you’ve purchased coverage in the past or are interested in buying your first policy, many of these questions may be on your mind. It’s only natural to start at the beginning, with the following question among the most important: why choose a whole life insurance policy as compared to one of many other options? Every consumer is in a unique situation. While it may make sense for you to purchase whole life insurance without delay, others could be better off learning more about additional options. With that in mind, there are several reasons why selecting a whole...
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Saving for Higher Education with Whole Life Insurance College costs are continually rising, and it’s only getting tougher to save for it. Paying for your child or grandchild’s college education tomorrow requires planning today. A whole life policy is a great way to save for college tuition. Along with guaranteeing a death benefit, whole life insurance features a cash value account that grows tax-deferred . Assuming you buy the policy when your kids are very young, by the time they head to college, you can withdraw the money or borrow against the policy to help pay for college. Additionally, life insurance policies don’t count as assets when colleges analyze your need for financial aid....
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Death benefit of whole life insurance policy collapses if you stop paying premium Question: My friend Rick asked me: Does a whole life policy disappear if you stop paying the premium and the policy has cash value? Answer: Whole life insurance is usually designed to require premium payments up to age 100. The cash value will continue to accumulate and ultimately will be equal to the death benefit at age 100. If you die, the company pays the death benefit and keeps the cash value. If you live to age 100, the policy "endows" and they hand you your cash. Whole life is designed to force cash to accumulate. If you stop paying the premium at any time along the way, the policy’s death benefit...
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Whole life insurance guarantees coverage for the lifetime of the insured as long as premiums are being paid. It comes with living benefits that include guaranteed growth of cash value which the policy owner can access when and how they wish. Whole life insurance also guarantees the premiums and costs will never increase. Whole life insurance is one form of permanent insurance and is very different from term life insurance, which provides coverage for a specified period only and does not build cash value. This article explains how whole life insurance works… Life Insurance Can Offer Both a Death Benefit and LIVING Benefits Many people think of life insurance only in terms of a death...
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