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Friday, January 8, 2021

5 Things to Know About Whole Family Life Insurance

Do you spend a lot of time worrying about your family? If so, you're not alone.

In fact, if you're like most people, protecting your family is your top priority. And yet that can often be easier said than done. After all, life is full of unexpected events. That's why you need to use every available resource to keep them safe and healthy.

Whole family life insurance is an essential tool in preparing for the unexpected. This article takes a look at some of the top things you should know about one of the most common types of life insurance so that you'll know you're covered when life throws a curveball.

Keep reading to get the inside scoop.

1. Do You Need Whole Life Insurance?

This type of insurance is typically for people who want or need a policy to provide an income for dependent members of their family when the head of household dies unexpectedly. This is due to the fact that those dependents will not become self-supporting.

It can also be used to provide financial resources at the time of death to cover various expenses such as children's education or other capital needs, to cover federal estate and state inheritance taxes, or funeral expenses, etc.

2. What Advantages Do Whole Life Insurance Offer?

For starters, this type of affordable life insurance has a fixed annual premium. Thus there are never any surprises.

You can also borrow cash against your policy at a relatively low net cost.

Another big benefit of this type of life insurance policy is the fact that there is no public record of the payout amount or the person to whom it is payable.

3. What About the Tax Implications?

Here's another huge benefit of this type of life insurance policy: the death benefits are typically free of income tax. Thus it can be a very enticing way to leave large amounts of money to your heirs.

Here is a resource for learning about whole life insurance for military.

4. What are the Disadvantages?

It's important to keep in mind that there are also some disadvantages to this type of policy. The first is the fact that the premium might be unaffordable to many people, especially if you live on a limited income.

Another drawback is the fact that as a policy owner, you will likely be unable to deduct any interest paid toward the policy loan on your tax returns. You should also remember that cash values are subject to inflation.

5. How to Select the Best Type of Policy

First, you should compare current cash values, as well as the length of the guarantees contained in the policy. You could also study the bailout provision to make sure it matches your needs.

A Guide to Everything You Need to Know About Whole Family Life Insurance

Planning for the future isn't always fun, and it can be extremely confusing. Fortunately, these facts about whole family life insurance can help make the process much less stressful.

Keep scrolling to discover more useful small business or lifestyle tips and advice on our blog.

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