Having a life insurance plan may be more pressing than ever. According to the CDC, the average life expectancy is 76.4 years old.1 Having a plan in place can help protect your loved ones from the unforeseen difficulties that may arise if a main source of income is lost. A life insurance policy can help provide added protection. Whole life insurance is a popular choice.
There are many ways to go about choosing a plan, but the first step is deciding if whole life insurance is right for you. Whole life insurance can help ease the financial burden and allow your family to focus on healing. We encourage you to think about your dependents and how you can help provide peace of mind for your loved ones in the event of a loss.
Whole life insurance is a permanent life plan that provides coverage throughout your entire life. The premiums tend to cost more than a term plan would, but getting this insurance plan may be beneficial in the long run.
The whole life insurance cash value usually ends up being high, but payments grow in a tax-deferred account at an established rate. The premiums won’t change over time and the death benefit is certain, regardless of the time frame. In this sense, the policy functions as an investment and the death benefit payout usually reflect this. Typically, the death benefit in a whole life insurance plan yields a large outcome.
At Aflac, we take the guesswork out of your decision. You can find comfort in knowing your premiums are fixed and your payout is guaranteed (subject to limitations and exclusions).
Your whole life insurance rates are determined by your age, medical history, and coverage goals. These factors allow us to create a plan that suits your needs best. Once decided, the premiums are fixed throughout your plan and the death benefit is certain. Some insurance companies allow you to make payments monthly, quarterly, or biannually.
Next, a portion of your premiums is usually put into an investment account to grow throughout the life of the plan. When the plan ends, the accrued cash value of the plan will be paid out to the beneficiary. If you name your beneficiary as an irrevocable life insurance trust, you may lower the tax liability. You can also broaden the number of beneficiaries on your policy.
At Aflac, you can get a better idea of what your plan will look like by getting a whole life insurance quote. This helps make the process easier and quicker. Our whole life insurance plans are also portable, so you can take them with you to every new venture.
There are specific benefits to having a whole life insurance plan. At Aflac, we offer no-medical exam whole life insurance. Here are a few key reasons to choose this type of permanent coverage:
There are a handful of whole life insurance tax benefits that make this path appealing. Part of your premiums go into an account that accumulates over time, tax-free – otherwise known as the cash value. One of the main tax advantages of a whole life insurance plan is that your cash value can grow at a faster pace since there aren't any fees being taken out.
You are also able to tap into these savings in an emergency through a loan or partial withdrawal. This can be especially helpful if you withdraw any funds post-retirement because you’ll likely be in a lower tax bracket by then.
This type of plan is popular for those who want to maximize the cash value for loved ones. The beneficiary shouldn’t have to pay any income taxes on the death benefit. We recommend you speak with a tax professional to see how you can lower your tax liability, regardless of the plan you choose.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Typically, mature buyers choose whole life insurance to expand their financial portfolio. On the other hand, young families usually opt for term life insurance to save money in advance. Term life insurance is also popular among seniors mapping out their future.
Now that we have explored whole life insurance pros and cons, are you interested in taking the next step? The cost of this permanent coverage varies depending on your unique history and lifestyle. Chat with an Aflac agent today to find your plan to help protect your loved ones.
Explore your life insurance options.
1 National Center for Health Statistics - Life Expectancy. Last reviewed February 7, 2023. Accessed February 13, 2024. https://www.cdc.gov/nchs/fastats/life-expectancy.htm.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac does not offer Universal or Variable Universal life insurance.
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