Permanent Life Insurance/Universal Life
There are 2 main types of permanent life insurance: Whole life & Universal life insurance policies.
Universal life is typically better than the old whole life and has several options and benefits. These types of policies are just what the word permanent implies. You start a policy and it stays with you all of your life. It can also build some cash value and if started at a young age the power of compound interest can also serve to build significant cash value.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
Universal Life Insurance
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage. It is generally better than the old style whole life.
Many people will start out with Term insurance then later add permanent life insurance as their need for a policy that lasts increases. If you live past your 30 year term policy then what do you do if you need life insurance? Many times people are older and sometimes in declining health and that makes buying life insurance cost more. Thus the need for both if your budget allows.
Here are real-life samples of policies that we have issued for our customers solving their need for permanent life Insurance.
- Elaine age 31 non-smoker got a $100,000 UL policy for $50/mo.
- Darrell age 53 non-smoker got a $100,000 UL policy for $118/mo
- Jean age 73 non-smoker got a $50,000 UL policy for $172/mo
- Dan got his two young boys a $50,000 UL policy for $20/mo each. The boys will have over $25,000 of cash value at age 65 and still have the $50,000 of coverage.
Advantages of Living Benefits: The cash value growth of a Whole life/Universal life insurance policy is tax-deferred, meaning you do not pay taxes on the growth of cash value, unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a whole life insurance policy to help with expenses, such as college tuition or the down payment on a home.
The right life insurance coverage for each and every one of our neighbors in Plano is unique — talk with the Matt Lohoefer Insurance team today to find out how to protect your family and your future with the right life insurance.
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