Are you starting a family? Well, it’s time you consider purchasing life insurance. When you’ve someone else depending on your ability to earn income, this type of coverage could be a lifesaver. Once you’re gone, a death benefit will be paid to them. Aside from the death benefit, universal whole life insurance can be an integral part of your financial plan.
It Doesn’t Expire
With this type of coverage, you don’t need to worry about expiration. As long as you continue paying your premiums, your policy will never expire. Your death benefit will be paid regardless of the time you die. Whether it’s in the next few days, in five years, or 80 years later, you’ll always receive comprehensive coverage. Sounds amazing, right? Well, that’s exactly what life insurance is all about- consistency, flexibility, and no expiry. Find the best whole life insurance covers. Click to see rates.
When it comes to whole life insurance, you’ll be required to pay a fixed amount of premiums. But with other types of insurance policies, the number of premiums might be adjusted over time. And that can be quite a challenge, especially if you’re working on a limited budget. If that’s the case, consider purchasing whole life insurance. Premiums are fixed and affordable.
Accumulates Cash Value
Whole life insurance policies offer cash values. A fraction of each premium payment you make is included in your policy’s cash value. You can use that money to cater for any expenses you might have. And since it won’t go down, it will go a long way in strengthening your financial plans.
Aside from guaranteed cash value growth, most life insurance firms pay dividends. You can take the dividends as cash or utilize them to pay your premiums. Alternatively, you may want to consider reinvesting them in your policies. This will allow your cash value to grow rapidly.
Life insurance often comes with numerous tax benefits. And the death benefit is usually tax-free. Plus, the cash value is tax-deferred. You can always take what you contributed to your policy tax-free. Moreover, you can borrow against your money without paying any taxes. And that’s exactly what everyone wants, right?
In these hard economic times, everyone is looking for ways to cut down on costs. One of the best ways to do this is to invest in whole life insurance. It allows you to accumulate cash value, earn dividends, and avoid paying taxes. Even more, it comes with fixed premiums and doesn’t expire.
You don’t necessarily have to choose between whole life insurance and other forms of life insurance. Most secure financial plans usually incorporate a mix of different policies, perhaps term, as well as, whole life insurance. With such a combination, you’ll have more flexibility to prepare for most of life’s uncertainties. A financial agent can help you choose the right mix of insurance. Plus, he or she will advise you on how well it fits into your financial plans.