Company Comparison Chart
Click below to view the chart that compares the last 10 years of dividends history between the major Mutual companies. Please reach out if you want a longer lookback comparison.
Whole Life Uses
Whole life insurance is a type of permanent life insurance that offers a combination of life insurance protection and savings components. Here are the top 10 uses for whole life insurance:
Lifetime Coverage: Whole life insurance provides protection for the entirety of the policyholder’s life, as long as premiums are paid, ensuring beneficiaries receive a death benefit no matter when the policyholder dies.
Fixed Premiums: The premiums for whole life policies typically remain level for the life of the policy. This predictability can make it easier for individuals to budget for their insurance expenses.
Cash Value Accumulation: Whole life policies have a savings component called cash value. Over time, a portion of the premiums paid goes into this cash value, which grows on a tax-deferred basis.
Policy Loans: Policyholders can borrow against the accumulated cash value in the policy at relatively low-interest rates, which can be used for any purpose like paying for education, covering emergency expenses, or making investments.
Dividend Earnings: Some whole life policies, particularly those from mutual insurers, might earn dividends. These dividends can be used to reduce premiums, purchase additional coverage, or be taken as cash.
Final Expenses: Whole life insurance can be used to cover funeral and burial costs, alleviating the financial burden on loved ones.
Estate Planning: Whole life insurance can be structured to pay estate taxes or to fund trusts, ensuring that heirs receive their intended inheritance.
Charitable Giving: Policyholders can name a charity as the beneficiary, effectively creating a legacy gift.
Business Continuity: Whole life policies can be utilized in buy-sell agreements, key person insurance, or to cover business loan obligations, ensuring business continuity even after the death of crucial personnel.
Tax Benefits: The death benefit from a whole life insurance policy is generally income-tax-free for beneficiaries. Additionally, the cash value growth within the policy is tax-deferred, and loans taken against the policy are typically not taxed as income.
