What Is Whole Life Insurance and What are the Advantages of Having it?

Date: July 30, 2021

Infographic depicting whole life insurance

As an adult, you probably have a lot of people relying on you financially. Although none of us wants to think about not being around anymore, life insurance is imperative to ensure that your loved ones are taken care of after you are gone. There are many different life insurance options to choose from, each coming with different payoffs, premiums, stipulations, and requirements. Whole life insurance is just one type of life insurance that may be the best way to keep your family safe if something should happen.

Life Insurance is Not Cheap!

The most common reason that people forego taking out a life insurance policy is that they are not cheap. The older you get, typically, the more your premiums increase, adding to your financial obligations. Whole life insurance is a fairly inexpensive way to ensure that you leave enough behind to care for your family, while not being a hardship monthly for you. Once more, they combine guaranteed premiums, values and coverage, along with a cash accumulation, which with current interest rates, can end up adding to your overall wealth accumulation.

Who is Eligible?

The cost of life insurance increases as you get older. So no matter what the cost of it was when you took it out initially, it can vary from year to year. With a whole life insurance policy, there is a locked-in rate that is guaranteed. The only eligibility requirements are that you are aged 18 or more, with a maximum age of 70 for both you and your spouse. For your children, the minimum age is 15 days old and the maximum age of 25. Additionally, you have to actively work a minimum of 20 hours per week for thirty days more following your application.

What is the Payout Policy Amount?

One of the best features of a whole life insurance policy is that you get to choose the amount of insurance that you would like according to your life circumstances and finances. Policies go anywhere from $5,000 – $100,000 with a guaranteed issue up to $100,000 for your partner and up to $15,000 for your spouse. You can also add an Optional Child Term Rider for children.

Policy Values

As long as you continue to pay your monthly premium, the coverage offers a guaranteed cash value, which grows yearly. The value can never dip 3% of the guaranteed interest rate, which means that you can accumulate more than the original policy amount. The current interest rate, when you begin the policy, is guaranteed for the first year. On the policy anniversary date, you receive a statement of how much you have accrued along with the interest rate change, when applicable.

Portable and Constant

As long as you continue to pay your premiums, the policy will cover you. If your partner retires or changes jobs, the policy will continue as long as you continue to pay your monthly premium.

Accidental Death Benefit

The Accidental Death Benefit can double or even triple. It is a benefit that pays a greater amount to the beneficiary if the person who is insured is accidentally killed. If they are a passenger on a train, bus, plane, or any other type of carrier, the benefits pay an additional amount, up to $100,000 maximum. All participants ages 5 to 60 are eligible for the Accidental Death Benefit. 

No Health Exam Needed

One of the biggest advantages that whole life insurance provides is that you don’t have to have a physical examination to take out a policy. Therefore, if you are at high risk or have a predisposing medical condition, you pay the same as everyone else. Many health conditions not only drive up a person’s life insurance cost; they can render them uninsurable.

 If you don’t have life insurance, you are leaving your loved ones vulnerable if something should happen to you. A whole life insurance plan offers many advantages including no physical examination needed, the premium won’t continue to go up as you age, and you can start accruing savings that pay out more than the original policy, over time. Contact Samaha Insurance today to discuss how we can protect you and your family, in every way possible.


Submit a Comment

Your email address will not be published. Required fields are marked *