09/22/2022
For those that matter the most!
What is whole life insurance?
With whole life insurance, your insurance benefit is 100% guaranteed.
When it comes to protecting your family’s lifestyle and future, whole life insurance is as dependable as any financial vehicle. That’s because this coverage offers a host of guaranteed benefits and features that make it a strong choice for anyone who wants to know that their protection will be there today, tomorrow—or whenever it is needed. Of course, a life insurance benefit depends on the timely payment of premiums.
Here’s what whole life offers:
1. Guaranteed lifetime protection: Since the death benefit protection of whole life insurance is guaranteed for life, you can be sure that your loved ones will receive a lump-sum payment whenever you pass away. Best of all, beneficiaries typically do not pay federal income taxes on life insurance benefits, so they will be able to enjoy every penny of your gift.
2. Guaranteed cash value growth: Cash value is a built-in accumulation component that you can use in an emergency or to help prepare for important financial events like college or retirement.2 With whole life insurance, your cash value builds at a guaranteed rate. You can check how much money you will have available at any given time.
3.Tax-free access to cash value: You can use your cash value anytime you like. While during the initial years of a policy, the cash value accumulation of the policy may be limited – there are no restrictions whatsoever. Best of all, any loans or withdrawals3 you make can be completely tax free, making it an extremely efficient way to set aside money for the future.
4.Premiums guaranteed to never increase: With whole life insurance, your premiums are locked in at the time of purchase, so they are guaranteed never to go up due to your health, your age, or changes in the economy.
How is whole life different from term life insurance?
As the name suggests, whole life insurance is designed to last your entire (whole) life—no matter how long you live. In contrast, term life policies have a limited duration (usually five to 20 years), often need to be renewed, and the premiums are usually adjusted as you age. Plus, whole life policies build cash value, while term life policies do not.
Protect your family. Prepare for the future.
Chances are your family has a lot of financial needs. Some are day-to-day needs like food, health care and housing, while others are long-term needs like preparing for college. With its guaranteed protection and cash value, whole life insurance can help with both.
Here’s how whole life works:
First and foremost, whole life insurance provides valuable death benefit protection that will help preserve your family’s lifestyle in case you unexpectedly pass away. This protection begins the moment your policy is in force and continues right up to the day you pass away. In the meantime, your policy will gradually build cash value, giving you a tax-advantaged resource that you can use to meet future needs or to prepare for long-term goals like retirement. As a result, whole life insurance can help give families like yours financial security.
In the long run, it’s a good value.
Since whole life insurance offers a wealth of benefits and features, it can be an excellent value for those who need long-term protection. But if you’re wondering how much it costs, you may be pleasantly surprised. Recent studies have shown that more than half of all Americans overestimate the cost of life insurance by as much as 300%.4 That’s why we recommend working with a New York Life agent. Together, you can review several rate quotes, discuss a variety of coverage options, and see which insurance solution fits your needs and budget.
Does it matter when I purchase whole life insurance?
Since life insurance premiums are based, in part, on your age, there’s a good chance your rates for this coverage will never be lower than they are right now. So, if you want to lock in the lowest possible rates—and never have to worry about them going up in the future—the sooner you act the better off you’ll be.
We stand by our policies—and our policy owners.
While the quality of your insurance company is always important, it is especially important for long-term policies like whole life. Since you could be counting on this coverage for 20, 30—possibly even 50 years, you need to make sure the company you do business with will be there for you in good times and bad. At New York Life, we’ve been keeping our promises since 1845, and we continue to receive the highest ratings for financial strength currently awarded any U.S. life insurer.
