Pros and Cons of Whole Life Insurance

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Video Pros and cons of whole life insurance

whole life insurance companiesBest Whole Life Insurance Companies

Evaluating the top whole life insurance companies will depend on whether you are looking for cash accumulation or just death benefit protection.

Most younger buyers look at whole life insurance as an investment because of its cash accumulation and dividend options.

Which whole life insurance companies pay dividends?

Several highly-rated mutual companies offer participating policies that pay dividends directly to policyholders.

New York Life and Northwestern Mutual are terrific companies with quality whole life policies.

But, New York Life and Northwestern Mutual are both captive companies, so their agents can only sell their life insurance policies compared to a broker that represents a variety of insurers.

Many popular mutual insurance companies have significantly decreased dividends, including Northwestern, which lowered its 2020 dividend to 5.0%.

Highly rated companies like MassMutual and Penn Mutual are committed to selling independently through insurance brokers.

penn mutual whole lifePenn Mutual

We love Penn Mutual as our choice for someone looking for a policy with dividends or a substantial death benefit.

Penn Mutual often underwrites policies up to $2,500,000 death benefit without an examination required.

Penn Mutual’s Guaranteed Choice whole life offers many flexible payment options, from limited pay (10 and 20-year) to longer pay products paid up at age 65 or 100.

When looking for cash accumulation and dividends, always choose a mutual insurance company with a participating policy.

Mutual companies will outperform the competition because the policyholders are part owners of the company.

Penn Mutual is one of the best-performing whole life insurance policies because of its cash value performance and an industry-leading dividend rate of over 6% in 2020.

We would be happy to seamlessly integrate the best dividend-paying whole life insurance policy into your other wealth-building endeavors.

To maximize Penn Mutual’s cash value performance, you will want to ask your agent about overfunding your policy or the infinite banking concept.

What are the best whole life insurance companies for final expenses?

A popular and predictable way to cover your last expenses is with non-participating whole life insurance.

These policies offer smaller death benefits and are not for people looking for cash values or a sizeable permanent policy to protect their estate.

However, Mutual of Omaha, Gerber, and AIG whole life insurance are solid choices for final expense coverage.

mutual of omaha whole lifeMutual of Omaha

Mutual of Omaha is a well-known insurer with an A+ rating from A.M. Best.

The Living Promise is a non-participating whole life policy with coverage available up to a $40,000 death benefit.

The Living Promise is one of best selling whole life insurance policies for seniors because only a telephone interview is required for approval.

United of Omaha offers inexpensive permanent life insurance for smokers because they do not have a separate tobacco classification.

Plus, if you do not qualify for full benefits coverage, you are still eligible for their graded death benefit, which is limited to only $20,000.

Gerber whole life insuranceGerber Life

Gerber Life is a solid company with an A rating with A.M. Best.

With the Gerber whole life policy, you have no health questions to answer, and you are automatically approved!

Because there are no health questions, there is a two-year waiting period before a death benefit will be paid to your beneficiaries.

This guaranteed issue policy offers expensive coverage up to $25,000 and is only recommended for people with very high-risk medical conditions.

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