Whole Life Insurance Matrix

A common question which arises is what the differences are between whole life insurance and term life insurance. Whole life insurance is a type of permanent life insurance coverage which provides a guaranteed death benefit as well as cash values. A portion of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis.

Benefits to choosing whole life insurance are:

• Whole life insurance provides coverage for the entirety of the insured person's life, generally to age 100, as long as the policy is in force.
• Premiums are set and don't change.
• Premiums are partially determined based on the age of the insured. The younger the insured person is, the less expensive the annual premium.
• There are guaranteed cash values or dividends paid out according to the terms of the policy.
• The insured can borrow against their cash values.
• Current federal income tax law allows for deferred tax advantages for some insurance policies.

If you need more information about whole life insurance or still need clarification about whether term or whole life insurance is most appropriate for you, call Social Alliance. Our licensed life insurance professionals will be able to recommend appropriate life insurance coverage choices for you based on your individual and specific needs.