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Whole Life Insurance

What is Whole Life Insurance?

Life insurance under which coverage is intended to remain in force during the Insured’s entire lifetime, generally to age 95 or 100, providing premiums are paid as specified in the policy. A whole life insurance policy can build cash value on a tax-deferred basis. Both the premiums to pay and the cash values that result are predetermined and found in the policy contract. The cash value is an amount of money available to the policy owner for policy loans or as the surrender value if the policy is canceled and returned to the company.

Cash Value

The amount of money which the policy owner will receive if the policy owner cancels the coverage and returns the policy to the company. With pure whole life insurance, the cash value is guaranteed; the investment risk is the company’s. As an added benefit, cash value can be used by the policy owner as a “cash reserve” for emergencies, extra income, or college expenses. This is considered a loan (interest charges accrue). What’s more, you’re not obligated to repay the loan, but any amount not repaid will be deducted from the policy’s death benefit.

Getting Started
Contact us and let Wayne Direct help you determine which type of life insurance policy may be right for you.

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