It’s never too early to start looking into life insurance options—in fact, in some cases, the earlier the better. However, there are a number of reasons people hesitate when it comes to jumping on board the life insurance bandwagon. There’s that old invincibility complex—the one where all that bad stuff happens to other people, not you—but far more impacting is the fact that the insurance selection process is hard. There are a lot of different options to consider, and each has its own variables and restrictions written in finely printed Greek. There are insurance policies, assurance policies, protection policies, and investment policies, including universal life, variable life, endowments, limited-pay, accidental death, and of course whole life insurance in Denver.
With all those options and variables, how do you know which one will be right for you?
Having options is a good thing. It is beneficial to be able to choose from multiple different insurance types to pick the one that will work best for your specific situation and needs—from whole life insurance in Denver to universal life insurance. That being said, however, the number of options which you have available to you mean nothing if you can’t decipher the significance or differences between those options. At Mountain Insurance, our insurance agents can help you. We can sit down with you to go over not just the differences between the types of insurance, but we can also go over your wants, needs, assets and liabilities to determine which of those insurance options are going to work best for you.
What is whole life insurance?
While term life insurance has been a long-term staple when it comes to insurance selection, many people are beginning to notice the unique features of whole life insurance in Denver.
Whole life insurance in Denver provides life insurance coverage for the whole life of the individual. Unlike term life insurance, which covers a specific time period that is purchased at an established price, whole life insurance can provide insurance coverage for the entire life of the individual through (usually) yearly payments.
In most cases, whole life insurance in Denver guarantees that the policy’s cash value will increase no matter the performance of the company. In this way, the policy can act like a financial investment. Unlike universal life insurance and variable universal life insurance, the cost cannot increase and the cash value of the policy cannot decrease.
Further, the individual has options regarding how the dividends of the policy can be taken:
1. They can be distributed by the insurance company to the policyholder;
2. They can be used to reduce the premium payment; and
3. They can be reinvested back into the policy. This can help to increase the death benefits and the cash value of the policy at a much faster rate (depending on the insurance company’s performance).
And, whole life insurance in Denver has a couple other financial perks as well. Its cash value grows tax-deferred with compounding interest, income tax is usually only placed on the gains that exceed the total premium outlay, and most policies can be surrendered at any point, at which the policy holder will receive the cash value amount of the policy.
Whole life insurance in Denver is actually becoming a popular retirement funding vehicle rather than a risk management program. The more money that gets invested into the policy early on can reflect a much greater turnover in the end.
At Mountain Insurance, we know how challenging it can be to choose the best possible insurance option; however, with a little of our expertise and know-how, we can get you set up with the best insurance policy—whole life insurance in Denver or otherwise—so you can keep investing in your own future.