How Whole Life Insurance Works

When you are thinking about getting life insurance, there are many differences between the different types. Whole life is one kind of life insurance, and it works a bit differently from other types of policies. If you want to know more about whole life insurance, give us a call today at THINK Insurance & Financial Services in Pomona, CA to talk to an agent. 

Your Whole Life

Whole life insurance is called this because you can keep it for your whole life. While term life insurance is good for one specific set of time, whole life insurance never expires and stays in place for as long as you pay your premiums. If you are paying them, not even the insurance company can cancel the policy. Many people are given peace of mind in knowing that it will always be there. 

The Cash Value

Another way that whole life works differently is that it builds up a cash value. Over the years, as you keep paying your premiums, a portion of that will become available to you to borrow against. The cash value of the policy can take years to build up, but many people like knowing that it’s there just in case they ever have a serious financial emergency. 

The Death Benefit

When the insured person dies, this insurance type pays a death benefit to the designated beneficiaries. If the insured had borrowed against some of the cash value of the policy, that much will be deducted from the death benefit when it’s time to pay it out. 

Get Whole Life Insurance

If you like the idea of a policy that builds cash value, can be borrowed against and is there for your whole life, call us at THINK Insurance & Financial Services in Pomona, CA to talk about a whole life policy.