South Florida Whole Life Insurance Broker
Life, Health and Variable Annuities Insurance Lines
Life Insurance comes in three flavors. Term insurance offers plain-vanilla protection at a low cost. Then there’s whole life, which has a savings component. A third type, the return of premium is essentially a hybrid of the first two. Each of these has pros and cons, and AIB will consult with you and educate you as to the insurance coverage that makes the most sense at every stage of your life.
Whole Life Insurance is a life insurance policy that remains in force for the insured’s whole life and requires (in most cases) premiums to be paid every year into the policy. This results in an accumulation of cash values, which makes whole life insurance a good choice for long-range goals. The guaranteed cash values can provide money later on to help with temporary needs or emergencies. Whole Life Insurance offers the following features:
Premiums generally are level and payable for life: Since premiums are level, the younger you are when you purchase a whole life policy, the less expensive the annual premiums will be. Dividends: Whole life insurance policies can earn dividends. Dividends result when our actual life insurance costs turn out to be less than we assumed in setting our premiums. When this happens, your carrier may return a portion of your life insurance premium to you as a dividend. Dividends are not guaranteed, since they don’t know our actual costs in advance.
Guaranteed Cash Values: Unlike term life insurance, which does not accumulate any cash values, some of the money you pay into your whole life policy accumulates as guaranteed cash values. If you choose to surrender the policy, these guaranteed cash values would be available to you. Or, as long as the policy is in force, you may borrow against them as a policy loan at the current policy loan interest rate.