Whole Life – Universal Life

Whole Life Insurance is ideal if you are looking for a permanent Life Insurance policy. Unlike other policies that are in effect for a certain amount of years, Whole Life remains active as long as you make your payments.

Florida Whole Life Insurance

Whole Life or Permanent life insurance is a type of insurance plan option, which is designed to provide a long term solution for clients. The coverage will continue as long as the client continues to pay their premium. This kind of coverage can be more expensive when compared to term life insurance premiums at first. However, the permanent rate typically stays consistent over time, while term rates increase.

Permanent life insurance plans also offer more than just a financial benefit for beneficiaries at the time of death. The amount paid in premiums will be divided between the insurance plan, and a savings account, to build cash value. Following are several variations of permanent life insurance available to choose from:

Whole Life Insurance Coverage

This type of life insurance plan is created for people who have substantial financial needs to settle at the time of their death and want a long term plan. Due to the foreseeable and unchanging needs, the insurance rate generally is consistent over time. The premium is determined based on the age and health of the client at the time of signing the contract. This can be beneficial as a person ages and becomes higher risk, but keeps the same rate.

In addition, this insurance plan allocates part of each premium payment to build cash value. This value can be withdrawn by the client through a loan, or what is known as a surrender, if they choose. The cash value generally comes with a guaranteed amount, if not withdrawn, which follows a schedule to equal the amount of the death benefit by a certain age. (Typically 100) Many plans also accrue interest to further increase the cash value. This plan is considered reliable as the death benefit is guaranteed through the maturity date of the policy.

Universal Life Insurance

Universal life insurance is a long term plan which, due to its structure, offers flexibility which allows clients the option to modify premium or death benefit amounts. The plan is divided into three parts which include the death benefit element, cash values element and expense element which can be adjusted.

However, if the cash value isn’t sufficient to cover administration costs and the cost of insurance, the death benefit will lapse. Normally, when a client pays their premium, it is credited to the policy after the insurance company deducts the charges for administrative costs, policy costs and features. Each month, interest will be credited to the cash value based on the insurance company’s current rate.

Final Expense Life for Seniors

A final expense life for seniors is another type of permanent life insurance which is created to cover the final expenses involved with the death of a person. Because burial costs are expensive, this plain aims to relieve any stress about those costs by paying a fixed amount directly to the beneficiary selected, upon the occurrence of a death.

The beneficiary is not required to use the money on final expenses if they choose not to. In addition, these plans also often offer a cash value accrual which is tax-deferred. These are the primary options available for clients looking for a permanent life insurance solution.

For More Information about Whole Life

If you are considering a whole life or universal life solution for yor needs let our team of dedicated professionals assist you. Simply complete the form to the right and we will be happy to answer any questions or concerns you have. Any information you provide will be kept in the strictest confidence.

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