Whole life insurance is one of the most popular forms of permanent life insurance. In this post, we take a closer look at whole life insurance and review some of its benefits to help you understand if this type of policy makes sense for you.
What Is Whole Life Insurance?
As touched on earlier, whole life insurance is a type of permanent life insurance. As the name suggests, permanent life insurance policies offer lifetime coverage, so long as you keep paying your premiums.
In addition to a death benefit, whole life insurance includes a savings component whose value may grow over time.
Some whole life insurance policies might pay a dividend each year. Common ways to use this dividend include:
- Withdraw the dividend
- Add it to your policy’s cash value
- Use it toward paying your premiums
Keep in mind that dividends are never guaranteed, and even when there are dividends, they may be lower than your company projected.
Whole Life Insurance vs Universal Life Insurance
Whole life insurance and universal life insurance have some things in common. Both fall within the category of permanent life insurance and both feature a savings component.
However, there are some key differences between these two types of policies, with the most important being that universal life insurance gives you greater flexibility to adjust your death benefit and your premiums.
As you make these adjustments, however, you must be mindful of the fact that any change has an impact. For example, if you choose to pay premiums below the cost of insurance, the difference will be taken from the savings component of the policy.
In short, whole life insurance is a great alternative if you are looking for lifetime coverage. If you like this prolonged protection, but want to have flexibility to adjust certain parts of your policy, then universal life insurance may be a better fit.
Looking for Whole Life Insurance in Houston, Texas? BZ Bee Is Here to Help!
From life insurance to auto insurance and everything in between, BZ Bee Insurance Services is the way to go. We are located in Houston, Texas, and serve clients all over the Lone Star state.
To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
