Whole Life Insurance: Living Benefits

Whole life insurance benefits aren’t just for after you die. There are a significant number of living benefits that you should know. While the premiums may be slightly higher than term life insurance, the living benefits of whole life make it very worthwhile choice over term life insurance.

Whole Life Insurance Living Benefits #1 - Cost of Premiums Is Guaranteed

Your policy premiums will never go up. The guaranteed premium cost is one of the best whole life insurance benefits.  As a result, as you age you don’t have to worry about rising premiums.

Whole Life Insurance Living Benefits #2 - A Guaranteed Cash Value

The premiums you pay cover the cost of your life insurance and build a cash value. Your cash value will never decline unless you draw from the cash value.

Whole Life Insurance Living Benefits #3 - Cash Value Tax Advantage

You pay the premiums with after tax money, and the cash value grows without being taxed. However, you will only be taxed once you withdraw and it exceeds that amount of money you put into the policy.

Whole Life Insurance Living Benefits #4 – Whole Life Policy Pays Dividends

Whole life insurance pays dividends, and because they are considered a return on the premium they are not taxed. Furthermore, a dividend paid as a result of your policy will never lose value because it’s guaranteed as part of the cash value.

Whole Life Insurance Living Benefits #5 – Disability Protection

If you become disabled for whatever reason, as a result of your policy’s disability rider, the insurance company will make your premium payments until you return to health.

Whole Life Insurance Living Benefits #6 – Borrow against Your Policy

You can borrow from your policy. If you do this, the cash value within the policy will continue to earn compound interest. Best of all you do not have to pay the principle back. If you die with a loan balance then it will be deducted from the death benefit paid to the beneficiary.

Whole Life Insurance Living Benefits #7 – Cash Value Protected from Creditors

All money inside a whole life insurance policy is protected from creditors. As a result, no matter what your financial situation this money is safe and you can use it as part of the whole life insurance living benefits.

Whole life insurance living offers many benefits.

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