Having a good life insurance policy protects the future of your loved ones in the event of premature death. It is important to safeguard your family’s future. Single whole life, or single premium whole life insurance, comes with three major benefits.
1. Death Benefit and Cash Values Are Accessible
Most single-premium life insurance policies are accessible prior to death if you need the money to pay for any ongoing medical treatments. Some of the money can even be used if you’re diagnosed terminally ill. Another benefit is that you are able to take a loan on it and borrow against the cash value if you have a policy that has accumulated cash value.
2. Premium Is on a One-time Basis
A single whole life has the great advantage that you don’t have to worry about missing any future payments since you pay only one premium for life. If you have money on hand that you currently don’t need, it can be smart to invest it in a single-premium life insurance. This allows you to instantly increase the amount of money you are going to leave for your family.
3. Investments Are Tax-advantaged
Your beneficiaries don’t have to worry about having to pay taxes on the death benefit that they are going to receive. Furthermore, the cash value earnings are tax-deferred, hence not taxable, unless they are withdrawn.
With these three main benefits of single whole life in mind, you can decide for yourself if this type of insurance makes sense for you. An insurance expert can help you with this.