Whole Life Plan

 


The whole life plan assures you for the entirety of your life. So, a whole life policy will be in force until the insured's 100th birthday. This plan offers life insurance and a bonus component, as the name suggests, for whole-life. The policy does not expire if payments are up to date. Premiums won't change during the policy's lifetime, and provide guaranteed maturity benefit or death benefit, whichever is earlier.


How Does Whole Life Insurance Work?

Whole life insurance works as a policy that builds a bonus over time. As long as due premiums are paid, the policy remains active for the entire life of the policyholder, and will receive either a maturity benefit, or beneficiaries will receive a death benefit upon the insured's death.


What Does Whole Life Insurance Cover?


Death Benefit - Your beneficiaries are entitled to a tax-free, lump-sum death benefit at the moment of your passing.
Bonus - A living benefit that works as a safe investment and savings account the insured can access throughout their lifetime. Funded with a portion of the premium payments, the amount earns interest and builds cash value on a tax-free basis.
Riders - Insurance riders enhance the coverage and modify the terms of a policy. For example, you can enhance your protection by adding an “accidental death benefit rider.

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What Is Bonus of a Whole Life Insurance Policy?


Most people buy Whole Life Insurance to build tax-free deferred earnings. Bonus is added every year to whole life insurance plans to build tax-deferred earnings. If and when the insurance company generates a surplus of profit, policyholders receive dividends as partial refunds of premium payments. This living benefit works like a low-risk investment account, providing an extra source of income for retirement or emergency funding.
People who benefit from whole life insurance - Whole life insurance works for people that want long-term savings and protection:
• Parents – To ensure your children's financial well-being (fund education, build a trust for children with special needs, etc.)
• Couples – To cover daily and future living expenses, such as mortgage payments, for a spouse or partner
• People who need estate planning – To help your loved ones cover estate taxes, asset management and other death-related expenses in case of the policy owner’s unexpected or accidental death.
• Businesses that need to insure a “key employee” – To buffer any financial setbacks after the loss of an essential employee.


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