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    Whole Life Par Policy

    WHAT IS WHOLE LIFE INSURANCE

    Whole life insurance is a type of permanent life insurance policy that provides coverage for the entire lifetime of the insured, as long as premiums are paid as agreed. Unlike term life insurance, which provides coverage for a specific term, whole life insurance offers lifelong protection, along with a cash value component that accumulates over time. Whole life insurance is often chosen by individuals seeking long-term financial protection and estate planning benefits. It offers a combination of lifelong coverage, cash value accumulation, and potential for dividend earnings, making it a comprehensive solution for wealth preservation and legacy planning. However, whole life insurance premiums tend to be higher compared to term life insurance, reflecting the lifelong coverage and cash value features of the policy.

    THE BENEFITS OF A WHOLE LIFE INSURANCE POLICY.

    Whole life insurance offers several benefits that make it an attractive option for individuals seeking long-term financial protection and estate planning. Some key benefits of a whole life insurance policy include:

    1. Lifetime Coverage: Whole life insurance provides coverage for the insured’s entire lifetime, as long as premiums are paid as agreed. This ensures that beneficiaries will receive a death benefit payout whenever the insured passes away, providing peace of mind and financial security for loved ones.
    2. Cash Value Accumulation: A portion of the premiums paid into a whole life insurance policy accumulates as cash value over time. This cash value grows on a tax-deferred basis and can be accessed by the policyholder through policy loans or withdrawals. The cash value component provides a source of liquidity and financial flexibility, allowing policyholders to access funds for emergencies, opportunities, or supplemental income during retirement.
    3. Guaranteed Premiums: Whole life insurance premiums are typically fixed and guaranteed for the life of the policy. This provides predictability and stability in terms of premium payments, ensuring that premiums will not increase as the policyholder ages or if their health deteriorates.
    4. Death Benefit Payout: In the event of the insured’s death, the beneficiaries receive a tax-free death benefit payout from the whole life insurance policy. This payout can be used to cover final expenses, replace lost income, pay off debts, or provide financial security to surviving loved ones.
    5. Estate Planning Benefits: Whole life insurance can play a valuable role in estate planning by providing liquidity to cover estate taxes, debts, or other expenses that may arise upon the insured’s death. Additionally, whole life insurance policies can be structured to provide an inheritance or legacy for future generations.
    6. Potential Dividend Earnings: Some whole life insurance policies may pay dividends to policyholders, depending on the financial performance of the insurance company. These dividends can be used to enhance the policy’s cash value, reduce premiums, or be received as cash.

    Overall, whole life insurance offers a combination of lifelong coverage, cash value accumulation, guaranteed premiums, and estate planning benefits, making it a comprehensive solution for long-term financial protection and wealth preservation.

    Answers to Common Questions

    Whole life insurance is a type of permanent life insurance that provides you coverage for your entire life. Your premiums won't change as you get older. Your policy will often have a guaranteed minimum cash value.

    We call it “participating insurance” (or “par insurance”) because the policyholder participates in the risk along with the insurance company. As part of this risk-sharing relationship, par policyholders may also share in certain rewards when their policies perform better than originally expected.

    As opposed to a non-par plan, which has guaranteed and fixed benefits, a par plan has non-guaranteed benefits which depend on the profits of the company and therefore future bonuses can never be guaranteed.

    You'll typically pay less for life insurance at age 25 than at age 40. Waiting until age 60 may mean an even bigger rate increase and limited policy options.

    Combining growth, flexibility and stability, iA Participating Life Insurance (iA PAR) is permanent life insurance that includes basic coverage for which premiums, the initial face amount and the surrender value are fully guaranteed.