There are several considerations and
benefits to choosing a whole life insurance policy over other different
types of life insurance policies in Denver, CO. With so many options in
the insurance marketplace, it is certainly confusing to choose the best
insurance plan for you.
However, here are a few advantages of whole life
insurance plans in Denver to help you decide why this might be the
right one for you.
Benefits of Denver Whole Life Insurance
• Lifelong Insurance Coverage: The
term whole life insurance is no misnomer! As the name implies, whole
life insurance plans are designed to provide insurance coverage for your
whole life, unlike term insurance policies, which only offer coverage
for a specified period of time.
• Fixed Insurance Premiums:
Premiums for other types of insurance policies generally increase over
time to reflect the rising cost of protecting older policyholders. But
for whole-life insurance policies in Denver, insurers average the entire
cost so that you pay a predictable and level premium throughout your
time. Having a fixed insurance premium can be easier for people to plan
around the budget.
• Cash Value: One of the distinguishing
features of a whole life insurance policy is "cash value". It means that
the insurance premiums you pay towards your plan accumulate in a cash
balance that you can use even when you are still alive! If you do decide
to discontinue paying your premiums, your insurance plan may still be
worth something to you. This, however, depends on how much cash has
accumulated. On the contrary, term insurance premiums (pure insurance
policies) only pay out upon a death.
• Encourages Savings:
For those who require additional encouragement, paying a compulsory
policy premium forces them to set aside cash that can be used at a later
date.
• Flexible Money Options: The accrual nature of your
whole life insurance plans will offer you several flexible options in
the future - should you decide to discontinue paying premiums. There may
be a waiting period before you can borrow against your cash value. You
can also opt to stop paying new premiums, and stretch your accumulated
cash value and existing premiums towards a reduced benefit protection.
• Possible Dividends: If you have a participating whole life
insurance policy, you can receive dividends from your company. However,
they're not guaranteed and are only paid out when your agency has excess
investment earnings, favorable mortality statistics, or savings on
expenses. You can choose how you want the dividends to be used: reduce
your premium payments, paid out in cash, accumulate interest, or pay for
paid up Additional insurance.
• Tax Deferrals: There are
added tax benefits of whole insurance policies in Denver. The growth of
interest in whole life policy is tax-deferred! In addition, if you have a
basic participating policy, any dividends you receive will be
considered a return of premium. They will not be taxed for until your
total dividends exceed your total premiums.
• Certain Death
Benefit: Policy holders are usually guaranteed a death benefit no matter
when the holder dies, so long as the plan is active. This assumes the
plan wasn't surrendered, and that premiums were continued. In
comparison, under term insurance policies, beneficiaries only receive a
benefit if the policy holder passes away within the period covered.
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