Whole Life Insurance

A traditional whole life insurance policy provides both a death benefit and a cash value component. The policy is designed to remain in force for a lifetime. Premiums stay level and the death benefit is guaranteed. Over time, the cash value of the policy grows and helps keep the premium level. Although the premiums start out significantly higher than that of a comparable term life policy, over time the level premium eventually is overtaken by the ever-increasing premium of a term policy.

Whole Life offers:
  • fixed premiums.
  • guaranteed death benefits payouts.
  • cash value guaranteed to grow each year tax-deferred.
Whole Life also:
  • has premiums that are initially higher than term insurance, but are guaranteed not to increase.
  • has reduced death benefit payout if there were loans or withdrawals.
Some of the valuable tax advantages of a whole life insurance policy:
  • Beneficiaries will receive the death benefits free of federal and state income taxes (tax-free proceeds).
  • The cash value of your policy grows income tax-deferred, which means no income tax is due on annual gains (tax-deferred growth).

The cash value of your whole life insurance policy is also available to you in the form of a loan against your policy.  You can borrow, within limits, against the cash value in your policy while keeping your policy active.

Other types of insurance to consider:

Term insurance for temporary simplified coverage with no cash value.

Permanent life insurance is for the life of the insured and the policy accumulates cash value.

Universal life insurance for permanent coverage flexibility and less emphasis on cash value

Variable* universal life insurance for permanent coverage and potentially higher cash value through investment options that involve risks including possible loss of principal amount invested.

Survivorship life insurance is for lifetime protection for two people that pays a benefit upon the passing of the surviving insured.

Disability insurance is designed to replace a percentage of earned income if accident or illness prevents the beneficiary from pursuing his or her livelihood.

Long-term care insurance is a policy that pays some or all costs of nursing home care for qualified insureds. Premiums are based on the age of the applicant and are projected to remain stable for the life of the policy. Premium payments stop when the insured meets the qualifications for long-term care, which include medical necessity, cognitive impairment, and inability to carry out certain activities of daily living.  Group policies are available.