Whole Life Insurance

Whole Life combines permanent protection with a savings component. As long as you continue
to pay the premiums, you are able to lock in coverage at a level premium rate. Part of that
premium accrues as cash value. As the policy gains value, you may be able to borrow up to
90% of your policy's cash value tax-free.

The main drawback of whole life is the premium inflexibility, and the internal rate of return in the
policy may not be competitive with other savings alternatives. Riders are available that can
allow one to increase the death benefit by paying additional premium. The death benefit can
also be increased through the use of policy dividends. Dividends cannot be guaranteed and
may be higher or lower than historical rates over time. Premiums are much higher than term
insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in
force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease
the death benefit if not paid back, payback is optional. Cash values are not paid to the
beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the
dividend option: Paid up additions is elected, dividend cash values will purchase additional
death benefit which will increase the death benefit of the policy to the named beneficiary.

Whole vs Term
Whole Life Insurance policies are different from Term Life Insurance policies. Term Life
Insurance policies are for a set time, and the insured is paid a lump-sum amount, if the insured
dies during the term of the policy. Depending on the type of policy, the insured may get certain
bonuses while still living.

The insured cannot claim in the case of death after the term of the life insurance policy, nor
can the policy be cashed. Simply put, a term life insurance policy covers the risk of death only
till a set period of time. A Whole Life Insurance policy covers the risk of death at any given time.

You can find out about the various policies by calling Jon Askew your local life insurance agent
in Baltimore MD at 410.456.5356. Though insurance is a non-tangible commodity, it is
extremely necessary, and it is never too early or too late to opt for an economic and affordable
whole life insurance policy. We are proudly serving Baltimore and all of Maryland.
TheLifeInsuranceGroup.com- Independent General Insurance Agency,
Licenced in the state of Maryland only.
PO BOX 26537 | Baltimore, MD 21207
We are licensed Maryland Life and Health Insurance Agents
Proudly serving Proudly serving Baltimore Maryland and surrounding counties.
Allegany County, Charles County, Prince George's County, Anne Arundel County, Dorchester County, Queen Anne's County, Baltimore City, Frederick County, St.
Mary's County, Baltimore County, Garrett County, Somerset County, Calvert County, Harford County, Talbot County, Caroline County, Howard County, Washington
County, Carroll County, Kent County, Wicomico County, Cecil County, Montgomery County, Worcester County
The Life Insurance Group
Financial Services & Insurance. Protecting Your Financial Future.
Call for an Appointment. Local in Baltimore, MD 410.456.5356