Permanent Life Insurance (Whole Life)
What is Whole Life insurance?
Whole Life insurance is a type of policy that combines a guaranteed death benefit with a cash value savings component. It provides lifelong coverage that will never lapse while the policyholder is still alive and also grows in value over time. Here are some of the benefits and drawbacks of Whole Life insurance.
Benefits:
- Guaranteed premiums that never increase
- Cash value component that increases over time
- Tax sheltered investment that never decreases in value, regardless of market downturns
- Viewed as an asset by your bank or institution
- Provides lifelong coverage with a tax-free death benefit that never decreases in value
- You cannot outlive the benefits of a Whole Life policy
- Death benefits are paid to the beneficiary without the need for probate
Disadvantages:
- Cost of coverage is higher than Term Life insurance policies
- It’s not as flexible as other permanent policies, such as universal life insurance
- It can take a long time to build up cash value
- It’s not always the best investment choice, as the interest earned on the cash value might be lower than other investments
When considering Whole Life insurance, it’s important to weigh the costs and benefits. The cost of coverage will depend on factors such as age, gender, smoking status, health, and morbidity at the time of purchase. Initially, Whole Life insurance typically costs five to ten times more than Term Life insurance, but over time the cost of Term Life insurance can exceed that of Whole Life insurance.
Ultimately, it’s recommended to consult with a financial advisor to determine if Whole Life insurance is the best option for your situation. Our associates at Experior Financial Group have the education and experience necessary to explain the details of different insurance products and help you make an informed decision.
Benefits of working with Experior Financial Group to get Whole Life insurance?
Experior Financial Group is committed to helping you find the best life insurance coverage that fits your budget and meets your unique needs. As a Managing General Agency, we are not tied to any specific insurance company and our brokers work solely for you. Our team will take the time to assess your individual situation and obligations to determine the right solution for you and your family.
Whether you need Whole Life, Term, Universal, or Permanent Life Insurance, we have a range of plans and coverage options available. We understand that each individual’s circumstances are different and we’ll work with you to find a plan that is affordable and provides the coverage you need.
Our experienced insurance associates will review your policy history, previous life insurance plans, and financial requirements to provide you with tailored solutions that match your unique needs. We’ll ensure you get the coverage you need at a premium that fits your budget.
At Experior Financial Group, we prioritize your needs and interests above everything else. Our mission is to provide you with the best life insurance coverage available and ensure that you and your family are protected in the event of unforeseen circumstances. Contact us today to speak with one of our brokers and get started on finding the right life insurance plan for you.
FAQ
Is a Whole Life insurance policy a good investment?
Experior Financial Group’s priority is to provide our clients with life insurance policies that best suit their needs and budget. We understand the importance of making a good investment when it comes to protecting your loved ones financially. While Whole Life premiums may seem pricey, they can be one of the best investments you can make, especially when started at a young age. With guarantees that you can count on, a Whole Life policy provides you and your beneficiaries with security and peace of mind.
Which is better? Term Life or Whole Life insurance?
Choosing between Term Life or Whole Life insurance can be a daunting task, but our insurance associates are here to assist you. They will assess your age, the type of lifetime or term coverage you need, and how much coverage you require. We will help you to create a financial needs analysis to ensure you get the products that suit your goals and needs while paying the lowest rates possible for your policy.
How does Whole Life insurance or Permanent Life insurance work?
Whole Life policies are designed to remain in force for your entire lifetime, provided that required premiums are paid. They also provide level premiums for your entire life and a cash surrender value if you choose to cancel the policy. This feature makes them ideal for covering funeral costs and final expenses, ensuring that beneficiaries receive a tax-free lump sum amount within a few days of claim.
Tax-efficient estate transfers
Another benefit of Whole Life insurance policies is that they can be used to pass on your wealth to your beneficiaries in the most tax-efficient manner. While it’s best to discuss this with your accountant and insurance agent, tax-free benefits ensure that your dependents do not lose out on their inheritance.
Can I cash in my Whole Life insurance policy in Canada?
In Canada, Whole Life policies accrue a cash value as part of the policy, which can be withdrawn at any time. So, if you need to, you can be content and have security in knowing that your Whole Life insurance policy can be surrendered for its cash value.