How Whole Life Insurance Works

When you need life insurance, and most people do, it’s important to know what you are paying into and how it will work. Whole life insurance works very differently from term life insurance. If you are interested in whole life, call us at Don Allred Insurance in Burlington, NC right away to find out more. 

Whole Life

One way that whole life insurance stands out from other life insurance policies is that it is good for your whole life. Just as the name suggests, it will cover you for the rest of your life as long as you stay up to date with your monthly premium payments. If you keep paying for your policy, it can’t be cancelled- not even by the insurance company. This gives you peace of mind for life. 

Cash Value

Another factor that distinguishes whole life insurance is that your policy will build a cash value. As you pay your monthly premiums, over time the amount that you pay in starts to build up a value within the policy. This is a cash value that you can borrow against when you need to. If you have a major financial problem, you can borrow some of that cash value and pay it back later just as you would with any loan. This can be extremely useful if a sudden financial problem comes up. 

Death Benefit

The death benefit of your policy is guaranteed. If you have borrowed against the cash value of your policy, and you don’t finish paying it back, the amount that you owe is simply deducted from the death benefit amount. 

Get Whole Life

If you like the idea of being covered for life, you may be a good candidate for a whole life policy. If you’re interested in getting one, call us at Don Allred Insurance in Burlington, NC.