PERMANENT LIFE INSURANCE
On this page we are going to talk about PERMANENT LIFE INSURANCE, also called WHOLE LIFE INSURANCE.
WHAT IS PERMANENT LIFE INSURANCE?
- Like all life insurance, PERMANENT LIFE INSURANCE is a contract, or agreement, between the insurance company and the insured, where the insurance company promises to pay a certain amount of money if the insured dies while the policy is in force. and assuming that the insured has fulfilled his obligations de Ella (pay the premium as required) under the contract (policy).
- WHOLE LIFE INSURANCE is permanent life insurance. It does not expire while the premium is paid as stipulated in the policy that details the life insurance contract. It is also called Value Insurance because it accumulates value over time. TERM LIFE INSURANCE, on the other hand, expires at the end of the period for which it was purchased and does not accumulate value. For example, if the TERM INSURANCE is for 10 years, then the insurance company only pays the benefit if the insured dies during the ten years contracted.
- In the event of the unexpected death of the main breadwinner in the household, the death benefit can replace the loss of income that said breadwinner generated. Such benefits can also help with the mortgage payments, or cover the expenses of the family's education. And, in addition, it can leave an economic legacy for the next generation.
- The cash value incorporated in the WHOLE LIFE POLICY increases over time without in turn creating the obligation to pay taxes on them. Taxes are deferred until the insured makes a withdrawal. But if the withdrawal is well structured, you may NEVER HAVE TO PAY TAXES ON THESE GAINS OR VALUE!
- Benefits paid by WHOLE LIFE INSURANCE (as is the case with all life insurance) are generally exempt from federal income tax.
- The policy owner can borrow against the accumulated cash values without paying taxes. Loans against the policy accrue interest and, if not paid at the time benefits are paid, then reduce death benefits and the value of the policy.
- WHOLE LIFE POLICIES may earn dividends as dividends are declared by the life insurance company; although such dividends are not guaranteed.
A VALUABLE FEATURE OF PERMANENT LIFE INSURANCE ARE THE GUARANTEES THAT THEY OFFER
What Is Paid In Premium Is Guaranteed – unlike other types of cash value life insurance, the cost of the policy is fixed from the moment you buy it and will never increase . The premium will never increase, but can nevertheless be reduced or even eliminated. Guaranteed Death Benefits – knowing that a death benefit will be available to your heirs, no matter when the insured dies, is the primary reason for purchasing a WHOLE LIFE POLICY. Provides financial protection for your family. Guaranteed Increase in Value
– Combined with the potential to receive dividends, a guaranteed cash value makes Whole Life a unique product. For retirement planning purposes, the illustrated cash value in later years becomes more credible when guaranteed cash represents a significant portion of the asset.
Offers Dividends – When dividends are declared, they are credited to the policy, further increasing the cash value and death benefit paid.
WHOLE LIFE INSURANCE, also called CASH VALUE LIFE INSURANCE, is life insurance for a lifetime. With its guaranteed lifetime cash value, guaranteed premiums, and guaranteed death benefit, no other financial product offers such lifetime security.