Whole Life Insurance: What Is It, and Why Do I Need It?

Whole Life Insurance: What Is It, and Why Do I Need It?

Whole life insurance gives you the bang for your buck you’re looking for.

Protecting your family is important because you never truly know what lies ahead. A permanent – or whole – policy remains in effect from the day you purchase it until the day you pass away (as long as the premiums are paid, of course), unlike a term life insurance policy which is only active from the day you purchase it until the day your term is up. Learn what your whole life insurance policy’s death benefit can be used for, and what things can be covered by your policy’s cash value.

The death benefit of your whole life insurance policy can be used for:

  • Survivor needs
  • Mortgage protection
  • Business needs
  • Wealth transfer
  • Charitable giving

The cash value of the policy can also be accessed during your lifetime through a policy loan and be used for useful things like:

  • College tuition expenses
  • A down payment on your first home
  • Supplementing retirement income, as your need for life insurance decreases
  • Emergency needs

It is important to note that if you do withdraw your cash value, your policy’s loans accrue interest at the current variable loan interest rate. That decreases the death benefit your loved ones would have received by the amount of the outstanding loan and loan interest.

For help finding the right life insurance in Plano, Texas so that you can start enjoying the peace of mind that comes along with coverage, contact the Tri-Star Insurance Professionals.