Whole Life
Insurance

Whole life insurance is a permanent life insurance plan, that includes a saving component. Whole life insurance plans accumulate cash value that you can get, either when you terminate (surrender) the policy or if you decide to borrow against the policy value. Whole life plans are beneficial when you want a permanent life insurance plan which includes an investment component that is invested and monitored for you.

Whole life insurance plans can be beneficial when:

• You want to have a permanent life insurance plan.

• You want to have predictable insurance rates, as whole life insurance rates will always stay the same.

• You want investments to be managed for you

• You are not expecting high investment returns, whole life insurance’s cash

  value accumulation offer moderate investment returns.

Whole life insurance plans are typically divided into participating and non-participating options. Both plans offer lifetime protection and a guaranteed cash value. The participating plans pay an annual dividend, which is not guaranteed. Most participating whole life policies offer a few options with the dividends earned. Clients can choose to keep the dividend within the policy. Use the earned dividends to purchase more paid-up insurance. Have annual dividends earned, to offset annual premium or use the dividend to get more paid up term insurance.

Non-participating policies offer no dividends, the value of these plans is guaranteed. The shorter the policy payment period, the higher the premium. The guaranteed cash surrender value of whole life policies varies by the amount of coverage, length of time paid, and the company issuing the coverage.