How does a whole life insurance policy work?

Whole life insurance provides permanent coverage that can’t be outlived. Your price is typically locked in for life and doesn’t change.

Policies are designed to automatically build cash value that can be used while you are still living.

How does cash value work?

A portion of your payment goes into an account inside of your policy that accrues interest and can pay dividends.

As you continue to make payments over the years your cash value grows and is guaranteed. Here are a few ways the cash in your whole life insurance policy can be used.

• No credit check loans– You may borrow from your cash value at a low interest rate without using your credit. If this money isn’t paid back the debt is just subtracted from the death benefit your family will receive.
• Supplement retirement income– Systematic loan withdrawals can be used as a source of tax-free income.
• Sustain your policy– Tough times are a part of life. If you ever a rough spot and can’t make your payment you may use the cash value to pay your policy so that you don’t lose your coverage.

Do I have to pay on a whole life policy for the rest of my life?

No. There are a couple options available that allow you to receive permanent coverage without having to make payments forever.

• Reduced paid up option– Your policy builds equity just like when you purchase a mortgage on your home. If you decide to stop making payments on your policy in the future you don’t lose all of your coverage. The reduced paid up option allows your family to still receive whatever equity has built in the policy even if you stop paying.
• Limited pay options– Whole life insurance can be purchased in one lump sum payment. There are also options available to pay the policy up in a specified number of years or by a certain age.

Is it hard to qualify for whole life coverage?

Not at all. Whole life insurance covers a wide age range (0-85) and can cover a multitude of pre existing conditions.

In fact, whole life can be easier to qualify for than other policy types.

Is whole life insurance expensive?

Life insurance pricing is based on your age and health at the time you apply. The younger you are the lower your premium will be.

Generally speaking, whole life costs more than term life insurance because the policy can’t be outlived and it also builds cash value.

Is there a waiting period before coverage starts?

If you are in decent health you should qualify for same day coverage. If a person has had significant negative health history a 2-year wait may be imposed on the policy.

This provision allows those who have been denied for standard coverage an opportunity to still get protection.

With term or universal life if you are denied for same day coverage there are no alternatives offered.

Are there any additional benefits?

Yes! Our carriers offer a special benefit that can pay you cash if you suffered from a heart attack, stroke or even receive a cancer diagnosis while your policy is in force.

Do I need to take a medical exam?

No, an exam is not necessary to qualify