If you plan on taking care of your family by purchasing a life insurance policy, you need to understand the benefits of life insurance. There are several essential elements of life insurance that make them worth the financial investment. Working with your insurance agent will ensure that you get the policy that is right for you and your family. Additionally, knowing why you want to purchase life insurance and what you hope to achieve by doing so will give you a good idea of how much insurance you should consider purchasing.
Whole Life Insurance Benefits
Whole life insurance policies build cash value over the course of the policy. In addition, whole life insurance policy premiums are fixed for the duration of your policy. They will never increase if your health worsens or if your financial situation changes. The death benefit portion of your policy will be the face value of the policy when you purchased it unless you borrowed against the policy.
Builds Cash Value
Whole life insurance policies put your money to use in two ways. Part of your premium is put into an account that is set aside to pay your death benefit. This second part of your premium is put into an account that will continue to accumulate value every time you make a payment. When enough equity has built up within the policy, you have the option to borrow against it. You can choose to pay the money back with interest or let it be taken out of the face value of the policy after you have passed away.
Permanent Life Insurance
Whole life policies are designed to live with you. It is as permanent as you are. Unlike term life policies that are set for a specific number of years, a whole life policy will remain in effect throughout your life. As long as the monthly premiums are paid, the policy cannot be terminated or cancelled. With this type of policy, the death benefits provided to your loved ones are tax-exempt. This type of life insurance is often the policy of choice for individuals who are looking for financial stability as well as peace of mind when it comes to protecting their families.
Financial Stability for the Future
A whole life policy provides a family with long-term financial stability. Before you pass away, the cash value of the policy is available to you if you are ever in a situation where you need access to money in a hurry. After you pass away, the death benefit ensures that your financial obligations are met and your family will have the money they need to sustain their standard of living.
Protecting your family now and in the future is what life insurance is all about. If you want to learn more about the elements of a life insurance policy and how they will benefit your family, contact the agents at Action Insurance Group. Our life insurance experts are ready to get started. Contact us today for more information.
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