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Assurena Insurance Agency is an independent insurance brokerage agency that carries some of the best coverage options in the entire New USA.

Our Contacts

88 Centre Street North,
Toronto L4W 1C9
advisor@assurena.com admin@assurena.com
+1 (419)-507-0468
+1 (213)-345-0468

Working Hours

Monday
9.00 - 5.00
Tuesday
8.00 - 5.00
Wednesday
8.00 - 5.00
Thursday
8.00 - 5.00
Friday
8.00 - 4.00
Satureday
Closed
Sunday
Closed

Whole Life

Home Life Insurance Whole Life

What is Whole Life Insurance?

 

Looking for an easy and affordable way to protect your loved ones after you pass away? Whole life insurance may be a great option for you.

Whole life insurance is permanent life insurance that provides coverage for the entirety of your life .Unlike term life insurance, which only provides coverage for a specific period of time. Therefore these policies do not expire and can provide a death benefit to your beneficiaries whenever you pass away.

In addition to providing a death benefit, whole life insurance also has a savings component. A portion of your premium payments are invested by the insurance company, and the earnings are tax-deferred. This means that you won’t have to pay taxes on the money that accumulates in your policy until you withdraw it.

Another great feature is that it allows you to borrow against the cash value of your policy . This can be a great way to access funds in an emergency or to help pay for large expenses like a down payment on a house or a child’s college tuition.

 

How does cash value work ?

 

Cash value is a special feature of whole life insurance that allows you to save money while you are alive. Every time you make a payment into your whole life policy, a portion of that payment goes towards building up the cash value.

The cash value of your policy grows over time because the insurance company invests the money for you. The investments made by the company can include things like stocks and bonds, which have the potential to earn a return over time.

As the cash value of your policy grows, you can borrow against it if you need to. This means that you can take out a loan from your policy and use the cash value as collateral. The loan can be paid back over time, with interest, and the interest payments are usually lower than what you would pay on a traditional loan.

It’s important to remember that borrowing against the cash value of your policy reduces the death benefit that your beneficiaries would receive if you were to pass away. So, it’s a good idea to only borrow what you need and to pay back the loan as soon as possible.

If you don’t borrow against the cash value of your policy, it will continue to grow over time. And, if you keep your policy in force for many years, the cash value can become a significant source of savings that you can use for things like retirement or other long-term goals.

 

Are there different types of Whole Life Insurance?

 

What is Whole Life Insurance?There are several types of whole life insurance policies that you can buy. Here are some of the most common ones:

  1. Traditional whole life insurance: This is the most basic type of whole life insurance. Provides a guaranteed death benefit and a guaranteed cash value accumulation over time.
  2. Universal life insurance: This type of insurance offers more flexibility than traditional whole life. You can adjust your premium payments and death benefit over time.
  3. Variable life insurance: With variable life insurance, you can invest your premiums in various investment options. Invest in stocks and bonds, to potentially earn higher returns. However, this also means that your cash value may decrease if the investments underperform.
  4. Indexed universal life insurance: This type of whole life insurance allows you to invest your premiums in an index. This can potentially earn higher returns based on the index’s performance.
  5. Guaranteed issue life insurance: This type of whole life insurance is designed for people who may not be able to qualify for traditional life insurance due to health issues. Guaranteed issue life insurance policies typically have a smaller death benefit and higher premiums.

It’s important to note that each type of whole life insurance policy has its own pros and cons. The best policy for you will depend on your individual needs and financial situation. Work with a broker at LMS Insurance group to get the policy that fits your needs.

 

How much do these policies cost?

 

The cost of whole life insurance can vary widely depending on several factors such as

  • age
  • health
  • gender
  • lifestyle
  • amount of coverage
  • type of policy

In general, whole life insurance premiums are more expensive than term . Whole life policies have a cash value component that grows over time, and they offer lifetime coverage as opposed to coverage for a specific term.

To give you an idea of the cost, here are some hypothetical examples of what a healthy non-smoking individual might expect to pay for a $500,000 whole life insurance policy:

  • A 30-year-old male might pay between $4,500 and $6,500 per year.
  • A 40-year-old male might pay between $7,000 and $9,500 per year.
  • A 50-year-old male might pay between $12,000 and $15,000 per year.

Again, these are just estimates, and the actual cost of a whole life insurance policy will depend on many factors. It’s a good idea to get quotes from several insurers and compare the costs and benefits of different policies to find the one that best fits your needs and budget. Its always best practice to work with a broker at LMS to shop the plans for you .

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