There are two main types of life insurance. Term life insurance offers protection for your loved ones for a specified period of time. Whole life insurance policies do not expire; they are intended to protect you for your entire life. Some types of these policies accumulate cash value. Read on to find out which may be right for you. About Term Life Insurance How long does term life insurance last? It’s called term because the insurance lasts for as long as the term you select. Term policies pay death benefits—if you die during the period covered by the policy, proceeds will go to your beneficiaries. Term life insurance can be for as little as one year and up to 30 years. Most companies...
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A Look at Whole Life Insurance Whole life insurance is designed to remain in force for your whole life, as long as you remain current with your premiums. In exchange for fixed premiums, the insurance company promises to pay a set benefit when the policyholder dies. Whole life insurance policies can build up cash value — effectively a cash reserve that pays a modest rate of return. This growth is tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Most whole life insurance policies allow policyholders borrow a portion of their policy’s cash value. Interest payments on policy loans go directly back into the policy’s cash value. When the...
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A Look at Whole Life Insurance Whole life insurance is designed to remain in force for your whole life, as long as you remain current with your premiums. In exchange for fixed premiums, the insurance company promises to pay a set benefit when the policyholder dies. Whole life insurance policies can build up cash value — effectively a cash reserve that pays a modest rate of return. This growth is tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Most whole life insurance policies allow policyholders borrow a portion of their policy’s cash value. Interest payments on policy loans go directly back into the policy’s cash value. When the...
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COLUMBIA, S.C.--( BUSINESS WIRE )--Many people just think of life insurance as something useful when there’s a death. But Colonial Life’s new individual whole life insurance coverage announced today has the flexibility to provide benefits while the policyholder is still alive. Colonial Life’s new product debuts in 48 states and the District of Columbia – just in time for a busy enrollment season and Life Insurance Awareness Month. “Life insurance should be a part of every financial protection foundation,” said Rula Kibler, a product manager for Colonial Life. “And our new whole life product offers some great new benefits that can help a policyowner while they are still living.” Some of...
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Whole Life Insurance Pros and Cons Overview The biggest advantage of whole life insurance is that it covers the policyholder’s entire life – no matter what happens with the policyholder’s health or financial situation over the years, whole life insurance will cover the beneficiaries in the event of the policyholder’s death. Whole life insurance also offers cash value that grows over time, unlike term life insurance which offers only a death benefit during a limited timeframe – term life only gives a benefit if the policyholder dies, while whole life insurance gives benefits even if the policyholder lives. While whole life insurance is more expensive (per dollar of death benefit) than term...
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Most whole life insurance policies, universal life insurance policies, indexed life insurance policies, (and basically anything other than term life insurance) is sold to us under false pretenses. These policies are branded as a way to “guarantee” our family money when we die. However, if you delve into the fine print of these polices you will see that they aren’t nearly as good as they sound. In fact, there are 6 main problems with whole life insurance: 1. You don’t need it. Unlike disability insurance, where we insure against the unpredictable risk of becoming disabled, life insurance is different. We already know that we will “pass away” at some point. Thus, dying isn’t necessarily a “...
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Universal Life Insurance Need a life insurance policy that will last a lifetime, but value flexibility? Universal life Insurance offers permanent life insurance. Unlike term life, it doesn’t have a specified end date, so you can keep it in force for your lifetime. It also has a cash value accumulation feature that can provide much-needed funds later in life. Unlike many of the financial vehicles used to accumulate wealth, a Universal Life Insurance policy provides you with an efficient way to leave proceeds to your loved ones or favorite charity. Also, the death benefit from a life insurance policy is generally not subject to income taxes. Universal life will be there to support your...
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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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Financial security is something that every American strives for. Experts believe that the foundations of financial security are built off of three equally important pillars: a retirement plan, health insurance, and permanent life insurance. These three instruments complement one another and work together to create holistic security for individuals and their families. As an employer, offering all three of these benefits can be instrumental in attracting and retaining employees. For decades now, the conversation around financial security at work has centered on the first two pillars of retirement and medical insurance. It is the third pillar, however, that has received relatively little...
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Whole Life Insurance aginto 2018-02-02T14:26:06+00:00 Whole life insurance from Shaefer Insurance can help you secure your family’s financial future by providing the funds they need to: cover burial expenses, uninsured medical bills, pay off your mortgage and other outstanding debts, and maintain a comfortable standard of living. Perhaps you’ve been considering a switch to permanent life insurance. Whole life insurance can provide the protection you and your family need in the event you are no longer around, but with a monthly accumulation of cash for the duration of the policy. Like other forms of life insurance, whole life has a specified death benefit but it differs from term life...
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