This article informs readers about having a whole life insurance policy and why you should consider it.
Life insurance is not something to consider only when you are older, or your health is declining – a life insurance plan benefits everyone. Other policies include life insurance, term, universal, and whole life insurance. This article informs readers about having a whole life insurance policy and why they should consider it.
Whole Life Insurance Doesn’t Expire
One of the primary advantages of having a whole life insurance policy is that your death benefit (the amount of money an insurer will pay out to your beneficiaries) doesn’t have an expiration date as long as you pay your premiums. That is the distinct difference between term and whole policies. Term life insurance policies are only applicable to a specific “term” or length of time.
Build a Cash Value with Whole Life Insurance
A whole life insurance policy also benefits you while you are still living. A part of your premium goes toward the plan’s cash value (a savings component permitting policyholders to withdraw funds), gathering over time. Fortunately, you may use or access it anytime for any reason. Some people use a whole life insurance policy as part of their financial plan. Additionally, a whole-life plan is an easy form of permanent life insurance that people frequently use to grow generational wealth.
Furthermore, many life insurers pay dividends to raise cash value. You can take dividends as cash or use them to pay some or all of your premiums. However, many people invest them in their insurance policies to allow their death benefit and cash value to be produced faster.
Receive Tax Advantages
Another benefit of having a whole life insurance policy is its tax advantages. In particular, this life insurance plan has a tax-free death benefit. This means the cash value and growth through dividends are tax-deferred; you will only owe taxes on the growth portion if you terminate your policy and take out the money. In simpler terms, you can always withdraw the amount you paid in premiums, and it’s not taxable 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 X, Facebook, and Linkedin