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Whole life or permanent insurance pays a death benefit whenever you die - no matter how long you live! There are three major types of whole life insurance - traditional whole life, universal life, and variable life.
Each of these types of policies has benefits that may fit your needs, especially if you anticipate heavy estate taxes, want to build a cash value saving plan into your insurance policy investment, or have legacy needs suited to one of these three types of permanent life insurance coverage.
Here is a limited, general overview of each type of Whole Life policy available. Mark Rogerson will be happy to guide you thorough the process of determining how these types of polices may fit - or not fit - your needs.
Whole life is the most common type of permanent insurance policy. It offers you death benefit along with a savings account, refereed to as “cash value.” If you pick this type of life insurance policy, you are agreeing to pay a certain amount in premiums on a regular basis for a specific death benefit. The cash value would grow based on dividends paid by the company.
Universal life offers you more flexibility than whole life insurance. You may be able to increase the death benefit, if you pass a medical examination, years after you have taken out the policy.. Your cash value account generally earns a money market rate of interest. After money has accumulated in your account, you may have the option of altering your premium payments if you need to do that.
Variable life
This policy combines death protection with a savings account that you can invest in stocks, bonds and money market mutual funds. The value of your policy may grow more quickly, but you also have more risk. If your investments do not perform well, your cash value and death benefit may decrease. Some policies, however, guarantee that your death benefit will not fall below a minimum level.
Contact: Mark Rogerson
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