This article discusses the whole life insurance policy and why you should consider it.
Whether you are a college graduate with your first job, married, or having children, a life insurance policy benefits everyone. Life insurance is not something to consider only when you are older or your health declines. Other policy types include life insurance, term, universal, and whole life insurance. This article discusses the whole life insurance policy and why you should consider it.
Whole Life Insurance Doesn’t Have an Expiration Date
One of the top benefits of having whole life insurance is that your death benefit (the amount of $$ an insurer will pay out to your beneficiaries) won’t expire as long as you pay your premiums. That is the main difference between term and whole policies. Term life insurance plans only apply to a specific “term” or length of time.
Build a Cash Value with Whole Life Insurance
Whole life insurance benefits you while you are still living. A portion of your premium goes toward the policy’s cash value (a savings component allowing policyholders to withdraw funds), accumulating over time. You may utilize or access it at any time for any reason. Some people use a whole life insurance policy as part of their financial plan. In addition, a whole-life policy is an easy form of permanent life insurance that people often use to grow generational wealth.
Moreover, many life insurance companies pay dividends to grow cash value. You may take dividends as cash or utilize them to pay some or all of your premiums. However, many people reinvest them in their policies to allow their death benefit and cash value to grow faster.
Tax Advantages
Another benefit of having whole life insurance is its tax advantages. This life insurance plan has a tax-free death benefit. In addition, the cash value and growth through dividends are tax-deferred. This means you will only owe taxes on the growth portion if you end your policy and take out the money. In simpler terms, you can always take out the amount you paid in premiums, and you won’t get taxed as long as the policy is still active.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin