WHOLE LIFE INSURANCE Permanent protection that helps build wealth

Whole life insurance offers permanent protection for you and your family. As long as you continue to pay your premiums, you’ll be covered for life and your loved ones are guaranteed to receive a payout in the future (also known as a death benefit). Whole life insurance also builds cash value that you can use during your lifetime if and when your needs for protection change.

Whole life insurance offers many benefits—more than some other types of coverage. The payments (premiums) you make into the policy never go up, so you can rely on having consistent expenses. Your loved ones are guaranteed to receive a payout (death benefit) after you pass away. Whole life insurance also has cash value  that is guaranteed to grow, tax-deferred, over time. You can withdraw some of this cash value during your lifetime to fund things such as a down payment on a home or to supplement your retirement income as your needs change. (Accessing the cash value will reduce the available cash surrender value and the death benefit.)

It’s never too soon or too late to consider whole life coverage. Your payments into the policy (premiums) are usually lower when you’re younger, and they’re guaranteed never to go up. Whole life insurance also helps your money to grow over time, so you can even purchase a policy for a child to help pay for college someday. Later in life, after your protection needs have changed, your own whole life policy can also supplement your retirement income.

Whole life insurance builds cash value over your lifetime. If your need for the death benefit changes, you can withdraw some of this cash value without needing to cancel the policy. (This option would reduce the amount of the death benefit paid to your loved ones in the future.) You can also borrow money from your whole life policy and then repay it to maintain a higher level of coverage. Interest payments would also be due on the money you borrow. Or, if you decide to cancel your policy, you’ll receive what’s called the surrender value (the cash value minus any charges associated with canceling).

Whole life insurance is a good choice for many different families and needs. You can protect your loved ones financially with the guarantee that a death benefit will be paid to them after you pass away. You can also use whole life insurance to build wealth, since it has cash value that grows over time, tax-deferred. Additionally, a whole life policy can supplement your finances at several points in your life: potential regular earnings (dividends), loans you can borrow for expenses such as a down payment on a home or college tuition, and withdrawals later on to support your retirement.

Whole life insurance is a long-term financial product that can help your family in many ways. Your monthly costs may depend on features of the whole life policy you choose, the amount of coverage you need, and your current age. (The younger you are when you purchase whole life insurance, the lower your monthly payments will be.) Your agent will work with you to create a whole life insurance policy that fits your budget and helps you work towards your financial goals.

Workplace coverage is important, but it may not give you all the benefits you need.

Here are three important factors to consider:

1. Most employer-sponsored policies are owned by the company, so if you change employers, you will most likely lose your coverage.
2. Since most workplace policies offer term protection, your coverage will probably expire when you reach retirement age.
3. Term life policies do not build cash value, so there is no saving component on most company-sponsored plans.

Whole life insurance may be worth it if you’re looking for permanent coverage that lasts your entire life, along with cash value component that grows over time. It can be a smart option for those who want predictable premiums, a way to build savings, or leave a financial legacy.