A whole life insurance policy works very differently from a term life policy. Many people choose this type of insurance because of its financial benefits. If you are interested in starting a whole life policy, contact us at Old Pueblo Insurance in Oro Valley, AZ to talk to an agent about your insurance needs.
Continuous Life Insurance
With a whole life insurance policy, sometimes called regular life, the policy is intact for the rest of your life. As long as you keep making the premium payments as agreed, the policy can’t be cancelled by the insurance company. Many people like this benefit because the rates don’t go up as you get older. Using a term life policy is for one specific term as laid out in the contract rather than lifelong coverage.
As you continue to pay your premiums, your whole life insurance policy will build cash value. This is a cash value that you can borrow against if you have a financial need for quick money. It can also be exchanged for an annuity to give yourself regular payments based on that cash value. If you choose to borrow against the cash value, the death benefit is reduced by the amount that was borrowed.
Whole life policies began because people wanted ownership over their death benefits rather than simply paying for someone else to own them. And today, whole life insureds still have ownership over these policies and the amounts they represent.
Talk to an Agent
If you’re interested in this type of policy, call us at Old Pueblo Insurance in Oro Valley, AZ. Make an appointment with an agent to talk about all of the different types of life insurance and which may benefit you the most.