If you want your family to be able to receive tax-free benefits after your passing, as well as to tap into your policy’s cash value while you’re still alive, you should take into consideration whole life insurance. Unlike term life insurance, which provides coverage for a set period of time, whole life insurance provides coverage for the entirety of your life at a set rate that doesn’t change as you age. So, let’s talk about whole life insurance rates.
Whole Life Insurance Rates
The most important thing you need to know about whole life insurance rates is that they remain the same throughout your life, regardless of whether your health deteriorates over time. So, if you buy a whole life policy during your working years, you can keep the same rate during your retirement years. It’s also worth noting that the rate can be worked into your budget.
With each fixed-rate payment you make, you also set money aside for rainy days, as well as your retirement. This is because whole life insurance builds cash value or dividends. It depends on the terms of your policy. If you need cash fast, you can borrow against the cash value. It accumulates over time in a tax-deferred account, and at a favorable rate.
No Expiration Date
A whole life insurance policy has no expiration date and cannot be revoked unless premiums are not paid on time. An accelerated death benefit rider can also be added to your policy at a minimal cost, or no cost at all. This way, if you become chronically ill, you have access to your death benefits. But note that whatever amount you use is deducted from the amount paid to your beneficiaries after your passing. If you already have a term life insurance policy in place but want to buy a whole life insurance policy, you can take advantage of its conversion feature.
Learn More About Whole Life Insurance Rates
If you’re interested in learning more about whole life insurance rates in California, then feel free to contact Michael McGann Insurance by phone at (925) 447-1744. Or, via email at email@example.com for a personalized, free and no-obligation quote.