If you have questions about whole life insurance, trust our team.
Whole life insurance is a permanent life insurance policy that provides coverage for the life of the policyholder. This type of insurance pays out a death benefit upon the death of the policyholder, but it can also include a savings component, allowing the policy’s cash value to accumulate over time. When you think about traditional life insurance, this type of policy is likely the most familiar and the one that would come to mind. It’s not the only option when it comes to life insurance, but it is the original life insurance policy that many people choose to protect their loved ones in the event of their death.
Whole life insurance differs from term life insurance in that it covers the entire life of a person, rather than a particular term of their life or number of years. As long as the premiums have been paid throughout the life of the policyholder, the policy will pay out upon their death. The savings component of the policy may also be invested or accessed by the policyholder while they are still alive, if needed. In order to increase the cash value, the policyholder typically has to pay more than the required premium amount. Withdrawing against the value of the policy reduces the cash value but doesn’t impact the death benefit.
If you have questions about whole life insurance, trust our team at Elite Benefits Group. We work with businesses and individuals in North Carolina to answer questions, provide guidance, and help people find the right health and life insurance policies that meet their needs.