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Whole Life Insurance
Policy Overview
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The most popular choice for
those seeking to cover
permanent needs, such as
contributing to a survivor's
nest egg, paying off final
expenses, etc. Whole life
insurance provides
permanent, lifelong
insurance coverage. The
benefit amount remains the
same and is payable to the
beneficiary(s) at the time of
the insured's (your) death. It
also offers an opportunity to
build cash value, so you can
take a loan on your policy to
fund major purchases or to
provide for unexpected
costs.
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Whole life insurance has a
fixed premium and a level
death benefit to age 100.
The premiums don't
increase with age, which
averages the cost of the
policy over your life. The
cash value increases with
time until it equals the death
benefit at age 100. This
type of policy never has to
be renewed or converted.
The cash value is an
amount of money that you
are guaranteed to receive in
the event of policy
cancellation.
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Variations of Whole Life
Insurance include:
Modified Premium
lower fixed premium for the
first 3 or 5 years, and then
premiums increase. These
policies work well for
individuals that expect to
improve their financial
condition in the near future.
Graded Premium
premium increases each
year for the first 5 years,
and then is fixed.
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1. premium costs may make
it difficult to buy enough
2. need to carry a whole life
policy for a considerable
length of time to be very
beneficial
3. cash value may be less
than your face value
4. cannot vary your monthly
premium payment and the
premium-paying period may
be lengthy
5. amount of coverage
cannot be increased at a
later date
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Advantages of Whole
Life Insurance
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1. guaranteed protection for
life
2. level death benefit that is
generally tax-free
3. premiums do not increase
in correlation with your age
4. cash may accumulate
tax-deferred
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Disadvantages of Whole
Life Insurance
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914-276-6000
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800-498-1819
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Click on the link below to
fill out a New York Life
Insurance quote form.
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Direct Access Group Benefits, Inc.
© 2004, All Rights Reserved
© 2004, All Rights Reserved
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(914) 276-6000
(800) 498-1819 toll free
(914) 401-9319 fax
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189 Route 100
PO Box 590
Somers, New York 10589
Westchester County, NY
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Group Benefits
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Direct Access
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