There are many reasons to purchase whole life insurance, which is why so many consumers turn their attention to this type of policy when they find themselves in the market for coverage.
While every benefit is well worth discussing, it’s important to focus a lot of your attention on one detail in particular: the guaranteed death benefit.
With other types of life insurance, such as term life, this isn’t something that comes into play. But with whole life insurance, it’s exactly what you’ll get.
Why Is It Important?
You may be wondering why a guaranteed death benefit is so important. You may also have questions about what exactly this can do for you.
Here are some of the many reasons why this is a big deal:
- It creates a legacy from day one. Are you interested in leaving money behind to your heirs, such as your children? With whole life insurance, you know that this will happen. As long as you pay your premium in full and on time, the death benefit is guaranteed. This gives you peace of mind from the day that you purchase the policy.
- A great way to transfer money tax free. With other forms of investments, transferring money after your death can result in a hefty tax bill. This doesn’t come into play with whole life insurance. If you want a way to leave money behind tax free, this is a good place to start.
- The death benefit is guaranteed to never decrease. When purchasing a policy, you will make the decision as to how much of a death benefit you require. From there, no matter what happens, your death benefit will remain the same. All you have to do is pay your premium.
- The death benefit won’t go down, but it can grow. Did you know that your death benefit has the potential to grow with the cash value and divided performance? You’ll pay your regular premium, as scheduled, and let the policy do the rest of the work. There is no guarantee that your death benefit will increase, but the potential is there – all the while knowing it will never decrease.
- You are not required to keep the principal intact. For example, you can take money out of your policy, such as after it begins to accumulate cash value. This gives you the opportunity to enjoy your earnings while you are alive.
So, there you have it. If you have ever wondered why a guaranteed death benefit is such a big deal, you don’t have to concern yourself with this any longer. You now have a clear idea of what this can do for you.
Guaranteed Universal Life
If you cannot afford a whole life insurance policy, then a guaranteed universal life policy may be a good fit of you.
This type of policy will give you permanent death benefit, with a guarantee. However, it the premiums will be much lower. You can get a certain age guarantee. Most common policies will have a death benefit guarantee until age 100 or 110.
You have to be careful, because most of the death benefit guarantees come with a risk. You shouldn’t access the cash value, because that will cancel the death benefit guarantees.
Whole Life has a guaranteed death benefit that you can’t ever outlive. The only thing left at this point is to compare whole life insurance companies, request quotes for coverage, and make a decision based on your findings.
Once your policy is active, you’ll rest easy knowing that you have a guaranteed death benefit in place.