Why Whole Life Insurance is a Must

Unlike term life insurance that expires after a specific number of years, whole life is valid for your whole life – assuming the policy premium continues to be paid. Therefore, whether you pass away in one year, 10 years, or 50 years, the payout is guaranteed to be made. Additionally, the premiums on whole life insurance remain the same throughout the duration of the policy. For those not in the know, premiums are the monthly payments that remit to the insurance company to keep your policy in good standing. 

Heaton Bennett Insurance in Austin, TX can help answer any questions you may have. 

Why Whole Life Insurance is a Must

With term life insurance, the premium can increase at the time of renewal. Another benefit offered by whole life insurance is that a small portion of each premium payment is added to the cash value component of your policy, which can grow substantially with time. Unlike the death benefit that is only paid out when the policyholder passes, the cash value of the policy can be borrowed against any time for any reason.

The final benefit offered by whole life insurance that cannot be overstated, is that there are multiple tax advantages. First, the death benefit is tax-free, and second, the growth within your cash value account is tax-deferred, meaning that you’ll only pay tax on the growth if you cash out the policy before the policyholder passes.

For more information on life insurance and assistance in determining which type of policy is best for you, give the team at Heaton Bennett Insurance in Austin, TX a call. Our knowledgeable team of insurance professionals will answer all your questions and help find the right life insurance policy for your needs. We look forward to hearing from you soon.