The third and final reason to love whole life insurance is the guarantees. Let’s face it, in tough economic times everyone likes a little safety. Even in boom times, it’s nice to know that something is guaranteed. Whole life insurance offers guaranteed growth of cash values. Dividends, once declared, can not be withdrawn or reduced. And your death benefit is guaranteed to be paid to your beneficiaries upon your demise. Your premiums are locked in and guaranteed never to increase like term life insurance premiums. And once you are approved for a whole life insurance policy you never have to re-qualify. Therefore, your benefits can not be stripped away due to a change in health. The key behind all of this is the contract.
A life insurance policy is a contract between the policyholder and the life insurance company. As long as the policyholder performs on their end of the contract by paying the required premiums and keeping the policy in-force then the life insurance company must provide the stated benefits. It’s that simple. And life insurance companies are the safest financial institutions around. They are fiscally conservative and are regulated to maintain high reserve requirements, commonly 1:1. For every dollar loaned there is a dollar in reserve. This is atypical of banks and other institutions who were extremely leveraged. While other institutions fail, life insurance companies remain strong and healthy. Whole life insurance is truly the only product that can guarantee what you want o have happen…will happen! That’s why it’s commonly called permanent life insurance. Unlike some of the features of term life and universal life policies, whole life is guaranteed. In times like this, safety and guarantees are comforting to my clients. They know what they have and they know it won’t be taken away or reduced.
Scott Storace
Tags: guarantee, life insurance
