VIDEO: Is Traditional Whole Life Insurance Right for You?

January 6th, 2012 | Author: Mitch Reynolds

Life Guard Insurance’s Video about Whole Life Insurance

Is Traditional Whole Life Insurance Right for You?

One of our new videos about traditional whole life insurance in Canada. This video explains how whole life insurance is an asset to you and provides insurance protection from day one. Everything about a whole life insurance policy is guaranteed – the premium, the death benefit, the payment period and the cash value.

Simple, straight forward and fully guaranteed. Whole life insurance is more expensive than most other types of life insurance, but no other coverage can offer such guarantees and has such a long history of strong financial performance.

I hope you enjoy this 3 minute video.

Transcript - Is Whole Life Insurance Right for You?

Whole life Insurance is life-long protection which is simple, permanent and fully guaranteed

It is a financial asset to you because the policy has a cash value

Your Whole Life premium is guaranteed. You’ll know how long you will pay the premium, and how much it will be.

The cash value is guaranteed. And your death benefit is fully guaranteed.

So how does whole life insurance work?

A Whole Life Insurance plan is completely managed for you by the insurance company. They take on all the risks.

And since they have to meet those risks, they manage money rather conservatively so you are always guaranteed your life insurance is there.

You can choose to quick-pay your whole life insurance in a 10, 15 or 20 year payment plan and then be done paying.

Or you can pay for the rest of your life.

The cash value of your insurance policy is in two parts — guaranteed cash value and enhanced cash value.

The guaranteed portion means you will always have that amount of cash inside your policy.

The enhanced cash value is related to the profitability of the insurance company for this particular whole life product.

If the company is making money, they pay you back in the form of dividends, creating enhanced cash value inside the plan.

Now, dividends relate to the profitability of the life insurance company.

If they invest wisely, control expenses and death claims are lower than expected, they make extra profits.

A large portion of this profit is paid back to the policy holders in the form of a dividend.

You can use your dividend many different ways.

You can retain the money as cash on deposit inside the plan. This might not be the best idea since it is just being held at daily interest rates

You can have the money paid out to you as a cash return.

You can use your dividends to pay your premiums.

Or you can use your dividends to buy up chunks of additional life insurance to give you a growing level of coverage.

There isn’t as much potential to build wealth inside whole life insurance as there is with a product such as universal life — but also there’s no risk.

With whole life insurance you’re guaranteed not to lose money.

If you are looking for something that is simple straightforward and guaranteed, Whole Life is an excellent choice.

Give us a call at Life Guard Insurance to find out how Whole Life Insurance might be the right choice for you.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Is Traditional Whole Life Insurance Right for You? would be very much appreciated.