While life insurance is considered by many financial experts an important part of personal financial planning, it is a topic that many families understandably put off discussing. The knowledgeable team at Walker & Solomon can answer questions and ultimately help you and your family navigate the various options to determine what is right for you.
A Short Overview of Whole Life Insurance
Whole life insurance is also sometimes called permanent life insurance and is designed so that the policy benefit is paid when an individual passes away.There are three main types of whole life insurance, which are traditional whole life, universal life, and variable universal life. Within each type, there can be variations.
The basic definition of whole life insurance is a policy that remains in effect for the insured’s whole life and generally requires annual premiums to be paid into the policy.
Some of the main motivations that individuals acquire life insurance include:
Replacing income for dependents
Paying final expenses
Creating an inheritance for family members
Paying federal and/or state “death” taxes
Leveraging a substantial charitable gift
Creating a source of savings and/or broadening a financial investment portfolio