4 Benefits of Whole Life Insurance
Ready to protect your family with life insurance, but not sure which policy to purchase? Buying life insurance for your family can seem overwhelming. That’s why we put together a guide to one of our most popular policies – whole life insurance. Learn about the benefits of buying whole life insurance, and how this policy compares to other types of policies.
Whole life insurance, explained
Whole life insurance is a type of policy that lasts your entire life, as long as you pay your premiums. With a whole life policy, your premiums never increase, even as you get older or if you face a health issue. When you pass away, your policy pays your loved ones a lump sum of money. They can use this money to cover funeral expenses, as well as living costs in your absence. Whole life policies also accumulate cash value. Over time, you can borrow this cash in a loan, or use it to pay your premiums, if needed.
You may already know the benefits of purchasing whole life insurance. But if you’ve been putting it off, now may be a great time to get coverage. As you age, you risk facing higher premiums, or worse, passing away without a policy in place.1
Here are a few other good reasons to get coverage sooner rather than later:2
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You plan to have a family.
If you’re planning to grow your family, it’s wise to get life insurance – even if neither you nor your partner is expecting right now. If something happens to you, it’s important to ensure your children are protected.
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You’re getting married.
Life insurance can help your spouse pay for a mortgage, utility bills and other costs that contribute to your current lifestyle.
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You have debt.
If you have student loans, a mortgage or credit card debt, you don’t want your loved ones to pay those costs on their own. Life insurance can help pay off your debts.
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You plan to support aging parents.
Are you part of the sandwich generation? If so, a life insurance policy can help protect your aging parents by providing the care they need if you pass away. The funds can be used to help pay for an at-home nurse, medical bills and other support.
If you’re still at the beginning stages of investigating life insurance, you may want to ask yourself a few questions first. For example, consider your family’s needs, lifestyle and how you want your family to live if you’re no longer there. Then talk to an Amica Life insurance sales representative by calling 844-753-5433. Our dedicated team is here to guide you along the way.
Types of whole life insurance
At Amica, we offer a variety of premium plans – with coverage ranging from $25,000 to $1 million or more – so you can find a whole life policy that works with your budget. You can also select among several payment options to find the right policy for you.
Here are three of our whole life insurance policies and an overview of how they work:
- Whole Life 20: You pay premium payments for just 20 years. Then, your policy is guaranteed to last for the rest of your life. This policy is available for people up to age 80.
- Whole Life 65: You pay premium payments up until age 65, which is when many people near retirement. After this point, your coverage is guaranteed to last a lifetime. This policy is available for people up to age 50.
- Whole Life 100: You pay premium payments until age 100, which for most people, is their whole life. That said, your premium payments are lower, and you’re guaranteed lifetime coverage. This policy is available for people up to age 80.
In addition, all three of Amica’s whole life insurance policies offer a Terminal Illness Accelerated Death Benefit at no additional cost. This benefit allows you to collect a portion of your payouts if you’re diagnosed with a terminal illness with a life expectancy of 12 months or less.
Careful planning now can protect your loved ones for years to come. Families can truly benefit from the protection offered by whole life insurance or another Amica life insurance policy.
Whole life insurance vs. term life insurance
How does whole life insurance stack up against term life insurance? Let’s explore the pros and cons of each.
To put it simply, term life insurance is a lower-cost policy that offers protection for a set period of time. Term life insurance policies provide coverage for the length of the term; whole life insurance policies provide coverage for the lifetime of the insured. The coverage for whole life insurance does not end as long as premiums are paid. Amica’s term life insurance policies last 10, 15, 20, 25 or 30 years.
Here’s a quick breakdown of whole life vs. term life insurance policies:
Types of whole life insurance
At Amica, we offer a variety of premium plans – with coverage ranging from $25,000 to $1 million or more – so you can find a whole life policy that works with your budget. You can also select among several payment options to find the right policy for you.
Here are three of our whole life insurance policies and an overview of how they work:
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Whole Life 20:
You pay premium payments for just 20 years. Then, your policy is guaranteed to last for the rest of your life. This policy is available for people up to age 80.
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Whole Life 65:
You pay premium payments up until age 65, which is when many people near retirement. After this point, your coverage is guaranteed to last a lifetime. This policy is available for people up to age 50.
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Whole Life 100:
You pay premium payments until age 100, which for most people, is their whole life. That said, your premium payments are lower, and you’re guaranteed lifetime coverage. This policy is available for people up to age 80.
In addition, all three of Amica’s whole life insurance policies offer a Terminal Illness Accelerated Death Benefit at no additional cost. This benefit allows you to collect a portion of your payouts if you’re diagnosed with a terminal illness with a life expectancy of 12 months or less.
Careful planning now can protect your loved ones for years to come. Families can truly benefit from the protection offered by whole life insurance or another Amica life insurance policy.
Whole life insurance vs. term life insurance
How does whole life insurance stack up against term life insurance? Let’s explore the pros and cons of each.
To put it simply, term life insurance is a lower-cost policy that offers protection for a set period of time. Term life insurance policies provide coverage for the length of the term; whole life insurance policies provide coverage for the lifetime of the insured. The coverage for whole life insurance does not end as long as premiums are paid. Amica’s term life insurance policies last 10, 15, 20, 25 or 30 years.
Here’s a quick breakdown of whole life vs. term life insurance policies:3
| Categories | Whole Life Insurance | Term Life Insurance |
|---|---|---|
| Length of Policy | Lifelong | 10, 15, 20, 25 or 30 years, depending on your policy |
| Coverage | Your coverage amount is guaranteed to stay the same for the length of your life, as long as you continue to pay your premiums. | Your coverage amount is guaranteed to stay the same for the length of your policy term, as long as you continue to pay your premiums. |
| Premiums | Your premium is guaranteed to stay the same, but may be a higher rate than a term life insurance policy. | Your premium stays the same for the entire policy term. Usually, term life insurance offers lower rates, but with a term that expires. |
| Benefits | Your policy can accumulate a cash value over time. You can then borrow this money, if needed. | With term life insurance, you do not accumulate a cash value. |
The benefits of whole life insurance
Many families decide the benefit of choosing whole life insurance outweighs the lower costs of term life insurance. There are a few other foundational differences between whole and term life insurance that families factor into their decision when choosing the policy that is best for them.
These benefits of whole life insurance include:
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No expiration date.
Whole life insurance is long term. As long as you pay your premiums, there’s no expiration date. Once you secure your policy and its rate, you may never have to apply for life insurance again.
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Cash value accumulation.
When you pay into a whole life policy, you also receive a unique benefit – a cash value that grows year after year. You can borrow against this money to help pay your premiums if you get into financial trouble or have an unexpected emergency.
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Tax advantages.
You can borrow from your cash value without current taxation. At your death, the borrowed amount is deducted from the cash value if you haven’t repaid the loan.
The bottom line? Whole life policies can give you peace of mind that your loved ones will receive enough money to comfortably cover their lifestyles. They can also ensure your funeral and burial costs will be covered, and that your loved ones won’t have to deal with outstanding debts. A whole life insurance policy may cost more now, but the protection it offers can be unparalleled. If you’re ready to talk to an Amica representative about buying whole life insurance , call 844-753-5433 today. We’re here for you.
1 Reality Check: Buying Life insurance Young Saves Money, Money Under 30, 2021.
2 7 Reasons You May Need Life Insurance, Even If You Think You Don't, Business Insider, 2021.
3 Term vs. Whole Life Insurance: How to Choose, NerdWallet, 2021
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ALIC80622 Jan-27