What is Whole Life Insurance? Understanding Protection for a Lifetime

Whole life insurance in Edmonton Alberta

Life is full of interruptions and complications, which is why you should have the right insurance policy in place to safeguard your family from unforeseen circumstances after your death.

This type of policy involves fixed periodic premiums that are calculated based on the assumption that you will be able to retain the policy for your entire lifetime. The death benefit from a whole life insurance policy will stay the same for the life of the policy.

Whole life insurance protects your family’s financial future after you. Not only does this type of insurance plan offer peace of mind, but it also provides a savings portion that is invested by your life insurance company.

What You Should Know About Whole Life Insurance

Most of us want to keep financial planning as simple as possible, which is why it’s important to understand your life insurance policy before committing to any conditions. If you want to protect your money, increase your savings, and build a financial portfolio that you can use to invest in valuable purchases, whole life insurance may be the ideal coverage for you. Here are some important details to consider when looking at this type of insurance policy:

  • Whole life insurance is usually a level death benefit but can also be an increasing death benefit – whichever you prefer.
  • Terms like Par and Non-par are used in this type coverage. Par whole life coverage involves dividends, which are the policyholder’s share of the insurance company’s overall profits. These in turn, increase the values of your policy. Non-par whole life coverage has no dividends, and future cash values are guaranteed.
  • The shorter the period of time that you wish to pay into the policy, the higher your premiums will be during that time.
  • The guaranteed cash value of the policy depends on the amount of coverage, how long you have been paying into the policy, and the insurance company.
  • There is a guaranteed tax-free death benefit that won’t change or depreciate.
  • The savings portion has a guaranteed rate of return.
  • The death benefit is paid out to a specific person or to your estate.
  • There are also several tax advantages to whole life insurance.
  • Whole life insurance builds tax deferred cash value, which you can use to pay your policy premiums, make investments, or save for retirement.

Whole Life Insurance in Alberta – Designed to Provide Safety and Stability

Whole life insurance is a great option for those who think long-term and want added security without investment gains or losses. With flexible cancellation options, you can terminate the agreement at any time and receive the current cash value of the policy. Signing up for whole life insurance and securing a low premium rate at a younger age is a safe choice, as premiums increase with age.

With over 30 years of experience, HDF Insurance has been helping clients make important insurance decisions to protect their loved ones and assets from the unexpected. We take the time to understand your needs, priorities and budgetary concerns when it comes to property, life, health and auto insurance. Contact us today for whole life insurance quotes to get protection for your lifetime. Our knowledgeable insurance brokers will compare and present their recommendations to you after assessing your needs.

Contact our full-service brokerage firm today at 1-800-567-2048 or request a free quote online. Visit one of our two Alberta locations to learn more about the guaranteed benefits of whole life insurance in Edmonton.