Whole Life Insurance

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Carolina Insurance Partners Whole Life Insurance

Planning for your financial future is hard enough when you’re planning on being a part of it. But protecting our loved ones’ finances by researching whole life insurance plans? Now that’s a task few people are eager to take on! At Carolina Insurance Partners, our team is dedicated to helping families throughout North and South Carolina find the whole life insurance solutions they need to ensure financial stability for their loved ones after their passing.

No matter what your whole life insurance needs may be, our team has the products and services available to help you meet them when it matters most. Contact us to learn more about our whole life insurance offerings and protect your family’s financial future today!

Types of Whole Life Insurance

As if life insurance shopping couldn’t be more complicated, there are many different types of whole life insurance policies from which prospective policyholders can choose. While all whole life insurance plans focus on providing insurance for your whole life, depending on your specific life situation, one option may be better suited for you than another.

Participating/Non-Participating Whole Life Insurance

A participating whole life insurance policy is one that only certain insurers offer. These policies can offer dividends to policyholders, which are based off the insurer’s annual profits. However, these dividends aren’t guaranteed. As one might assume, non-participating whole life insurance policies do not offer dividends as these insurance carriers do not participate.

Guaranteed Whole Life Insurance

This is a great option for those who may be concerned about coverage denial due to a poor medical exam. Guaranteed whole life insurance policies offer guaranteed coverage without a required medical exam; however, these policies typically provide limited coverage between $25,000 and $50,000. If you have pre-existing health concerns or are a senior looking for coverage, a guaranteed whole life insurance policy may be your best bet.

Indexed Universal Life Insurance

Indexed universal life insurance policies provide enhanced flexibility, allowing policyholders to vary their premiums and death benefits within set limits. The policy can build cash value, and the gains for which are tied to an index, such as the S&P 500, Nasdaq 100, or Russell 2000. Typically, these policies will guarantee that the interest rate on your policy never falls below zero, and the interest rate will usually be limited by the policy’s participation rate and cap.

Children’s Whole Life Insurance

Yup — even children have their own life insurance policies. Children’s whole life insurance is designed for kids aged 17 and under (although some policies are available to applicants up to age 20 depending on the insurer). These policies never expire, and their cash value can even be used to pay for college!

Additional Whole Life Insurance Options

Within your participating or non-participating life insurance plan, you may encounter a few additional options, including:

Indeterminate Premium Whole Life Insurance: In contrast to other whole life insurance plans, these policies’ premiums are subject to change. However, the premium will never exceed the guaranteed maximum outlined in your policy contract.
Limited Payment Whole Life Insurance: The premiums for these plans are typically higher and are paid over a shorter period of time.
Single Premium Whole Life Insurance: Rather than paying a monthly premium for coverage, a one-time premium is applied upfront.

Discuss your options with your Carolina Insurance Partner professional to discover which solution is best suited for your specific needs.

How Does Whole Life Insurance Work?

After you’ve done your research and have found a whole life insurance carrier that meets your needs, you’ll likely need to take a medical exam to qualify. In addition, you’ll need to provide your medical history, parents’ medical history, financial history, and other personal details to be considered. Expect the application and approval process to take between four and six weeks before receiving approval or denial.

Once you’ve been approved, the insurer will set your premium based on your age, health, and amount of coverage selected. These premiums shouldn’t change as you age or if your health declines, and a portion covers the death benefit that’s guaranteed to be paid out to beneficiaries at the time of your passing.
The other portion of your premium is counted as savings for what’s known as the “cash value” of the policy. This cash value is unique to whole life insurance policies and is a tax-deferred savings that grows over time at a minimum rate of return (usually around 3 – 4%). You can draw against this benefit while you’re alive to pay for things like education, down payments on a home, and other expenses. It’s important to note that withdrawing from your plan’s cash value is like taking out a loan, so you’ll pay interest on any moneys you take out from your account and be expected to pay it back over time.

Like all life insurance policies, you’ll elect a beneficiary to receive a death benefit at the time of your passing. They will file a claim with the insurer to receive the benefit, which can take up to 30 days to process. Once the claim has been approved, they will receive the funds outlined in your policy in either a lump sum or via a payment structure which you will set up at the time you opt in for coverage. These funds may be used as the beneficiary sees fit, including for funeral costs, decedent taxes, personal expenses, and more.

Benefits of Whole Life Insurance

Choosing a whole life insurance policy comes with many more benefits than securing your family’s financial future. In addition to financial protection, whole life insurance offers:

  • Dependable premium payments
  • Lifelong coverage
  • Guaranteed death benefits
  • Tax advantages
  • Available dividends depending on insurer

While whole life insurance plans are excellent options for some, others may not require the breadth of coverage outlined in such policies. Whole life insurance policies are usually ideal for people who:

  • Want long-term coverage
  • Have stable cash flow to pay premiums
  • Have adequate emergency funds and regular retirement contributions

Consult with your Carolina Insurance Partners team member to find out if a whole life insurance policy is right for your needs.

Whole Life Insurance with Carolina Insurance Partners

No matter what whole life insurance solutions you need to plan ahead, Carolina Insurance Partners has the team you need to make it possible. Secure your loved ones’ financial future, take advantage of tax-deferred savings, and gain peace of mind by finding your whole life insurance policy with our team. Contact us to get started today!

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