Whole Life Insurance
Coverage for Life with Fixed Premiums
One of the biggest reasons why people buy a whole life insurance policy instead of term life insurance is because a whole life policy accumulates cash value and lasts a lifetime. In addition to being entitled to the death benefit, you are building a guaranteed cash account that earns interest because a portion of your premium is invested by your insurance company.
How Whole Life Insurance works
Your monthly premium for a whole life insurance policy stays the same through the life of the contract, making it a more affordable option for those who want life insurance coverage for years to come. And, unlike term insurance, a whole life policy is a permanent policy — it will provide coverage through your entire lifetime. If you ever stopped making premium payments, you could surrender the policy and receive full cash value of your policy. You will need to review the terms of your contract closely to determine the available options.
Financial security after a devastating loss
Laurie, a single mom, had a whole life insurance policy in force since the mid-80s because she knew there was value in having such a policy. When Laurie needed cash to buy a new car and pay for her daughter’s Make-A-Wish trip, she wanted to cash out and cancel her policy. Laurie’s agent cautioned against cancelling the policy and suggested getting a loan against the policy instead.
Laurie got injured in a traffic accident and was unable to walk or work for a period of time. Her life insurance policy’s disability waiver covered her premium payments. A few years later, Laurie died in a car accident. Find out what happened next.
Harsh consequences after a dropped policy
Jermaine lost his grandmother and his father within a week’s time, a devastating turn of events that left Jermaine struggling to find direction and handle the family’s finances. Jermaine’s father was in the National Guard and had a life insurance policy but he dropped it, leaving nothing behind for his children.
Find out how this family dealt with the financial blows and coped with the loss.