Parents who want to buy whole life insurance should know about the key features, whether buying whole life protection for themselves or for their children. But first, ask yourself these questions:
Parents who want to buy whole life insurance should know about the key features, whether buying whole life protection for themselves or for their children. But first, ask yourself these questions:Read More
Life insurance helps ensure that the family and loved ones you leave behind are not financially burdened if you die unexpectedly. One type of life insurance is whole life insurance whose benefits are significant not only for beneficiaries but also for you while you are living.
Endowment life insurance is often put under fire by financial experts because the Tax Reform Act of 1984 took away many of the tax advantages of this type of life insurance plan. However, in many cases, an endowment insurance policy is a wise financial choice for saving for the future—especially if it offers life insurance coverage at full endowment value even before its maturity date, like the Gerber Life College Plan.
An endowment insurance policy differs from a whole life insurance policy in one very significant way—it matures and reaches endowment value faster than a whole life insurance policy. That’s why an endowment insurance policy is a good choice for saving for college. And you can get guaranteed coverage for as little as a dollar a day.
With the Gerber Life College Plan, you can set the maturity date to coincide with your child’s first year of college. You may also consider four separate policies, so you can cash in one per year and spread out the costs.
With college costs rising at an average rate of 4-6% per year, isn’t it time you started saving for your child’s future?
Before you set your sights on a life insurance carrier, you have to to determine if the policies they’re offering align with your needs. When it comes to shopping for a life insurance policy, there are two all-important terms that you have to familiarize yourself with: term life insurance and whole life insurance.
So, what the heck is the difference between the two?
Life insurance plans—just like families—come in many different shapes and sizes. It helps to understand the basic types of life insurance policies before you select the one that will best fit your budget and protect your family in case anything should happen to you.
Term Life Insurance Plans
The most basic—and most affordable—life insurance plan is term life insurance coverage. You purchase this coverage for a specific period of time. If you die while the term life insurance is in force, your beneficiary will receive the full amount of the policy. If you ever stop paying into the plan, you will lose any coverage, and the money you paid in.
Whole Life Insurance Policy
When you purchase a whole life insurance policy, you will pay set premiums through the life of the policy. Your insurance company will invest the money and whenever you pass, your beneficiary will receive the full amount of the policy. You may also receive dividends from your investment in a whole life insurance policy.
Gerber Life has a variety of life insurance plans to fit your family’s needs. Contact us for more information on life insurance plans.