Whole Life Insurance
Whole Life Insurance in Brampton, Mississauga & Etobicoke
Whole Life Insurance is like any other Life Insurance providing your beneficiaries a specific amount in the case of your demise. It’s just that in Whole Life Insurance there is no specific term. Your beneficiaries will be paid the amount no matter when you die. A Whole Life Insurance, available in Etobicoke, GTA can be reduced or canceled on your choice until the monthly payments are made regularly.
There are two types of Whole Life Insurances:
Non-Participating Whole Life Insurance – under which there is a guaranteed cash value is involved
Participating Whole Life Insurance – there are two cash values are involved (non-guaranteed)
The guaranteed cash values are the ones that depend on your premiums, and the non-guaranteed cash values are the ones that depend on your dividends. The dividends are paid according to the interest rates depending on the Insurance Company’s profitability.
Benefits of Whole Life Insurance Brampton, Mississauga & Etobicoke
Growing Cash Value
In Whole Life Insurance, a part of your premium builds a cash value which can be borrowed against the Insurance. It is a tax-deferred amount. The cash value also acts as a collateral to enable you to avail a loan from the third party.
You will be paying fixed premiums throughout your life. It may be high compared to Term Life Insurance with the same coverage, but are much less than the monthly payments of an extended Term Life Insurance for the whole life.
The cash value can be withdrawn from the Insurance and will be non-taxed until it exceeds the amount you’ve actually paid in.
Your health condition at the time you purchase the policy determines the fixed premium you’ll pay your whole life. So if you are healthy now, it is not too early to purchase a Whole Life Insurance and enjoy lesser monthly payments.
Guaranteed Death Benefit
Whole Life Insurance grows until your demise. Thus it is a guaranteed assurance, of protecting your family from any financial difficulty.
Can be revoked or canceled
If you surrender the policy at a later date, the cash value, if any, will be returned to you. If you stop making premium payments you can receive the cash value or use that cash value to provide a paid-up insurance benefit.
In case of Participating Whole Life Insurance, the insurer receives dividends which fluctuate according to the performance of the Insurance Company.