A whole life insurance policy, also known as permanent life insurance, can be purchased by itself or as a complement to term life insurance. It is coverage that doesn’t decrease over time or end at a certain date, such as age 65, the way a term life policy does. It has a pre-agreed death benefit, or payout value to your beneficiary, and doesn’t fluctuate with the performance of investments the way universal life insurance does.
Whole life insurance is often purchased by people to cover financial needs that they will still have very late in life, after the typical term life policy would have expired. It can be used to fund business buyouts so that a family business or the insured’s stake in another business doesn’t have to be sold off, but rather can be bought out by the next generation. It can also be used to help beneficiaries pay taxes on what they inherit from the insured.
Some people use whole life insurance to fund trusts for grandchildren or to leave a legacy gift to a favorite organization or charity. Others use smaller whole life policies just to make sure there is enough money in the pipeline to pay off any debts and all final expenses, since funerals can run into the thousands of dollars.
While the standard method is to pay premiums over time, you can sometimes purchase a whole life policy with one upfront payment. Your insurer might also give you options, called riders, over the life of your policy for things like increasing the death benefit or adding policies for other insureds, including children. Keep in mind that changing your policy’s benefits will usually also change your premium payment. Some insurers bill annually, while others allow smaller, more frequent payments—even monthly. Your Cliff Insurance Agency advisor will work with you to determine what works best for you.
For more than five decades, Cliff Insurance Agency has been dedicated to serving Wisconsin residents with the best in insurance products and advice. We serve the communities of Middleton, Madison, Verona, Sun Prairie, McFarland, Mt. Horeb, Cross Plains, Monona, Maple Grove, Cottage Grove, Deerfield, Mazomanie, and beyond. We’d like an opportunity to show you how we can help serve you. Please give us a call at 1-800-270-5101 to discuss what life insurance options are available to you. Or, if you prefer email us or complete and return the form above.