If you are seeking lifelong coverage for your beneficiaries if you pass away, then whole life insurance is likely your best option. When you purchase a whole life insurance policy, a portion of the premium is used for administrative purposes while the remainder is used to grow the policy’s cash value via investment. Willyard Agency in Highland Village, TX offers you the following facts to consider.
Is Whole Life Insurance Right For Me?
Think of the cash value of your whole life insurance, as a proven investment because it grows at a guaranteed rate with time and assuming that the policy premium contains to be paid. Typically, the cash value of a whole life insurance policy during the first 10 to 20 years of coverage is quite low because of a higher proportion of fees and the cost of the premium. However, as the policy ages the cash value can grow significantly. Consequently, whole life insurance is an excellent investment tool for individuals that are young because, in theory, it should offer a longer period to grow the investment account if you do not pass away prematurely.
Additionally, if you need to liquidate the life insurance policy for any reason you do have a few options. First, you can take a loan against the policy whereby the cash value is the collateral. Second, you can make a partial withdrawal of the cash value up to an amount determined by the insurer. Third, you can sell or surrender the policy if necessary.
For more information and to inquire if whole life insurance is right for you, give the Willyard Agency in Highland Village, TX a call. Our friendly and professional team is happy to schedule a no-obligation consultation with you to learn more information about your needs and goals so that we can help you make the best decision possible.