Whole life insurance comes in many different forms. With the right life insurance, you can protect your family and loved ones after you’re gone.
A limited pay life insurance policy allows you to pay for your life insurance over 10 or 20 years, but the coverage lasts for life. This means, you can avoid having to pay premiums after retirement.
You will have the option to pay your premiums on a monthly, quarterly, semi-annual or annual basis. The cash value grows tax-deferred and can be accessed during your lifetimes. The death benefit can even pass to your beneficiaries tax-free.
Along with a 10 and 20 limited pay life insurance option, you can also choose a Paid Up at 65 policy. This type of policy allows you to pay the premium until you turn 65. After the age of 65, the premium goes away, but the benefits remain.
If you’re looking for Limited Pay Life Insurance in Jacksonville, Florida, call an agent at Thomas & Associates today for a free quote!
A single pay policy is just what it sounds like. You pay a one lump sum payment into the policy in exchange for death benefits guaranteed to remain paid up until you pass. The cash investment will build up quickly and the size of the death benefit will depend on the amount you pay in, your health and your age.
A Joint-Life policy is perfect for married couples looking for a lower cost life insurance to protect their estate from taxes after they pass. This is not as common as an individual whole life insurance policy, but it enables both people, usually spouses, to share one plan.
There are two types of joint-life polices: first-to-die and second-to-die. First-to-die policies pay out to the surviving spouse after the first one passes. Second-to-die policies are also known as survivorship policies. These are paid out to the heirs after both spouses have passed.
A whole life insurance policy will carry a cash value, which you can borrow against during your lifetime. The amount will grow at different rates depending on your policy. Even though you can borrow against the policy, it’s not free money. You will still have to pay interest, just as you would with any other loan.
It’s important to understand if you die and you have an outstanding loan against your whole life insurance policy, your death benefits will be reduced to cover the loan.
If you have questions about the cash value of a whole life insurance policy, contact Thomas & Associates in Jacksonville to speak with an agent. We will answer all your questions and provide you with a free quote and review of current policies.
Choosing whole life insurance over term life insurance provides a more permanent type of protection. Permanent life insurance protection comes from the cash value element, which you don’t get with term life insurance. It is possible to purchase as much permanent life insurance as you can afford, and then use a term policy to increase your benefits.
Find out which type of life insurance fits best for your situation by speaking with one of our local agents. Call Thomas & Associates today!