Life insurance is complicated, even we admit to that. That’s why we think it’s important that the more you know the more informed decision you can make about your money. Do you want your money to go to a child or grandchild? Would you like to make a charitable donation that is tax-free? Do you want your family to go through the hassle of deciding the fate of your estate? These are just a couple of ways you can use a Life Insurance Policy. Call us for more information and to answer any questions you may have!
Whole Life Insurance:
A Whole Life Insurance policy is a permanent policy. At the time of your death, your beneficiary will receive the death benefit on the policy. A Whole Life Insurance policy provides additional benefits that you should be aware of. The policy builds guaranteed cash values. You can decide at any time to cancel and “cash out” the policy. Some Whole Life policies contain an Accelerated Death Benefit Rider. This Rider gives you limited access to the policy death benefit before death in terminal situations. For example, if you are diagnosed with a terminal illness and your doctor only gives you 6-months to live, you can access some of the death benefits to pay for medical expenses or take a special vacation with your family.
Single Pay Life Insurance:
A Single Pay Whole Life Insurance policy can be used in several different situations. Let’s say you have some money that you want to leave to your grandchild. You can use the money to purchase a Single Pay Whole Life Insurance policy naming your grandchild as the beneficiary. For example, you are a 50-year-old male who is a non-smoker and in good health. You can purchase a Single Pay Whole Life Insurance policy with a $10,000 death benefit for $3,155. To give another example, let’s say that you have some money that you want to leave to your church or other non-profit organization. You can use the money to purchase a Single Pay Whole Life Insurance policy naming the organization as the beneficiary. Again, you would only be paying $3,155 for a $10,000 death benefit that will be paid to the organization at the time of your death. When you use a Single Pay Whole Life Insurance policy to leave money to an individual or organization, you eliminate estate settlement hassles. The tax-free death benefit is paid quickly and easily to your beneficiary.