What is Whole Life insurance?
Whole Life is a form of life insurance that combines a guaranteed death benefit with a savings component called a cash value. This means that Whole Life will never lapse while you’re still alive, while simultaneously growing more valuable over time.
Benefits vs. Disadvantages
The beneficial features of a Whole Life plan include:
- Guaranteed premiums that never increase.
- Cash value component that increases over time.
- Tax sheltered investment that never decreases in value despite downturns in the market.
- Viewed as an asset by your bank or institution.
- Coverage for life that also provides your family with a tax free death benefit that will never decrease in value.
- You can not outlive the benefits of a Whole Life policy.
- Death Benefits are paid to the beneficiary without requirement to probate.
The Disadvantages of this type of insurance are:
- Cost of coverage is higher than Term Life insurance policies. Since permanent policies offer lifelong coverage, they come with a higher price tag. However, Whole Life typically costs five to ten times more than Term Life insurance initially. Term insurance will eventually exceed that cost and then in most cases expire before a claim is paid.
- It’s not as flexible as other permanent policies, like universal life.
- It can take a long time to build up cash value.
- It’s not always the best investment choice. Depending on the market, the interest you earn on the cash value might be less than what you could get with other investments.
The cost of Whole Life insurance in Canada
The cost will depend on a number of factors including coverage amount, age, gender, smoking status, health, and morbidity at the time of purchase, initially, it can cost five to ten times more than a term policy.
It is best to speak with an advisor to see if a Whole Life product is really the best option for your situation. Our Experior Financial Group associates have an education and experience in insurance products and can explain the details with you when you arrange a meeting with them.
Benefits of working with Experior Financial Group to get Whole Life insurance
At Experior Financial Group our associates work hard to get you the Whole Life, Term, Universal, or Permanent Life Insurance that best suits your budget. We are not an insurance company but rather a Managing General Agency: Our Brokers work for you and will assess your needs and obligations to determine the correct solution for you and your family. We can recommend the right life insurance protection and many types of plans to meet your unique needs. We’ll ensure you get the coverage you need at a premium you can afford and work within your budget. Our insurance associate will review your policy history, previous life insurance plans, financial requirements and provide you with solutions to get you the best life insurance coverage available.
