Features of whole life insurance:
- Provides guaranteed coverage for life.
- The premiums will never increase.
- Participating whole life policies will pay you a yearly dividend which can be used to lower your premium, increase the death benefit, or redeemed as cash.
- Perfect for people who think long-term and wish to have a plan that is not subject to investment gains or losses.
- You can surrender the policy at any time in the future and the current cash value of the policy will be returned to you. These cash values are guaranteed.
- You can choose to pay premiums for the rest of your life (until age 100), or for a set period of time - 15 years? 20 years? You can even purchase the policy in one single payment.
Major uses of whole life insurance:
- Estate Creation: Realize the advantages of a lump sum, tax free benefit, and how you could use it to create generational wealth within your family.
- Estate Preservation: Save your estate from government tax erosion, so your family can afford to keep the capital assets you worked hard for.
- Final Expenses: These can include funeral costs, court expenses related to probating your will, and other taxes associated with distributing your capital assets.
- Create a Legacy: Make a charitable donation to a church, school, or other organization.
- Buy-Sell agreements for business associates. Partners can use whole life insurance to buy out the remaining shares of a business in the event of the other’s death.
- Create a pension plan for your spouse while enjoying a greater income through pension maximization.