Whole life insurance is a permanent plan that never expires, unlike a term life insurance plan. With a whole life insurance plan, your premiums are fixed and will never increase.
At the start of opening your whole life insurance plan, a fixed interest rate will be given to you. This allows the cash value to multiply year after year. Every month, a portion of the premium you pay will go to the cash value of the policy along with the cost of insurance. This guarantees a fixed rate of return that depends on the exact amount of money that goes into your savings. This allows the policy’s cash value to grow exponentially over time.
To review, here are some of the staples of a whole life insurance plan:
- Fixed premiums that never increase
- Cash value is accrued over time
- Interest is paid on the cash value of the policy
- Can act as a tax-free investment vehicle
- You can borrow against the cash value of your policy
- Eventually, the policy is paid up and premiums are no longer due
If you are interested in learning more about the benefits of a Whole Life Insurance policy and live in the Brooklyn, NY area, or one of the five boroughs, give Hercules Financial Services Group a call today. We are standing by to answer any questions you might have and to help determine if a Whole Life policy is something that makes financial sense for you and your loved ones.