Whole Life Insurance
Type of coverage:
Permanent. Builds cash value
Guaranteed level, premium will never increase.
Initially significantly higher than term insurance, but eventually
lower than term insurance.
Cash value can be used to pay premium partially or entirely.
The cash value is always guaranteed. Dividends may be earned
in addition enhance the guaranteed cash value. The cash value
can be used to supplement retirement income, pay for college,
pay the policy premium, etc.
The death benefit is always guaranteed and may increase if
dividends are used to purchase additional coverage.
Whole Life is the most comprehensive life insurance policy
Its a great foundation to a financial plan since it
offers so many guarantees and can significantly contribute
to financial independence later on in life.
35-year-old male, healthy, non-smoker, $ 250,000 Death Benefit,
$ 2,795 annual premium.