For many people in the workforce today, life insurance is a relatively new concern. Because of factors like their younger age or never having had a job that provided benefits, many employees find themselves suddenly having to quickly make decisions about different types of insurance when they get their first benefits-eligible position, without any real education or support. Many don’t even know the difference between types, like term or permanent, and universal or whole. Read on for a quick primer on the benefits of whole life insurance to help you make that part of the decision.
Whole life insurance is permanent, meaning that as long as you pay your premium, you won’t lose your coverage. Additionally, those premium payments will never go up. Compared to term life insurance, which has lower premiums for young people and higher for older people, whole life payments are easy to budget and plan for. Having a policy already in place as you age also gives you peace of mind as you age.
As long as you continue to pay your premiums, the benefit of this policy will never just vanish. It isn’t like a retirement account that fluctuates based on the market. You know the amount you are contracting for, and you know how much you will get when you or your heirs cash it in.
When you pass, the amount that you leave to your heirs is largely tax-free and is easy for them to access. Since your insurance isn’t really part of your estate, you won’t have to worry about it being contested or taxed. Your heirs will have what they need, right when they need it.
Finally, leaving a life insurance pay out to your heirs, at minimum to cover your final expenses, but ideally to set them up for continued security and success, is why most people have a policy. But what if you don’t have a family and you don’t ever want or plan to have kids? Do you still need insurance? Yes! There are many things that you can do with a whole life insurance payout aside form leave it to your kids. You could name a favored charity as the recipient of the payout. You could also use it like a retirement account and use it before you pass. Finally, some policies may produce dividends that you can use to pay premiums, reinvest into your policy to grow it, or simply take out.
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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.