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What Does Whole Life Insurance Cover?
Whole life insurance is a type of permanent life insurance policy that provides coverage for your entire lifetime, as long as you pay your premiums. One key benefit to whole life insurance is that it builds cash value that you can borrow against or withdraw from.
Below, we explore whole life insurance further and take a look at the types of expenses these policies are often used to cover.
Uses For Whole Life Insurance
Most people take out a life insurance policy to help financially protect their loved ones when they die. In addition to covering the policyholder's funeral and burial costs, whole life insurance policies can be used to cover a wide range of other expenses, including:
- Mortgage payments
- Future education costs for dependents
- Day-to-day expenses such as child care and utilities
- Consumer debt
- Business loans
Ultimately, it is up to the beneficiary how the funds from the death benefit are to be used.
Benefits of Whole Life
Although whole life policies are not right for everyone because of their high cost, they do offer some benefits to those who choose to purchase them.
- The premium amount remains constant unless you choose otherwise
- You have lifelong coverage and only have to take a medical exam once (when you apply for the policy)
- A portion of your premium goes towards building the cash value of the policy
- This type of policy can provide tax savings opportunities while you're alive and for your estate
Is a Whole Life Policy Right for You?
A whole life insurance policy could be right for you if:
- You are young and looking for a low risk way to invest your money
- You are wealthy and planning your estate
- You want to leave a large sum of money to your children or other dependents
Find A Policy
Before you buy a whole life insurance policy, talk to a licensed agent about whether it's the right investment for you and your family. Call 800-966-7169 to speak to a licensed agent today.
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.