Whole Life Insurance

Whole Life Insurance in Kresgeville, PA

Are you looking for a way to obtain life insurance assets with cash value? If so, then create a whole life insurance plan with the help of IBC Global Inc! With whole life insurance, you can maximize cash value accumulation thanks to the unique qualities of the plan. Whole life insurance for real estate investors is an excellent option for those in that field, as well as anyone who is interested in partaking in a high cash value life insurance policy. Continue reading to learn more about the whole life insurance benefits and other facets regarding:

Our headquarters are located in Pennsylvania, but IBC Global Inc is capable of assisting clients with their dividend-paying whole life insurance and other matters across the United States, including:

  • California
  • Florida
  • Georgia
  • New York
  • Texas
  • And countless other locations

Direct and Non-Direct Recognition Life Insurance

If you intend on participating in whole life insurance, there are two types for you to choose from, being direct recognition life insurance and non-direct recognition life insurance. With direct recognition, insurance companies determine dividends based on your policy loan’s value, whereas non-direct insurance is given out at a consistent rate determined independently of your loan. There are advantages and disadvantages of using both types for creating a high cash value life insurance policy, and the preferred options will vary based on an individual’s own circumstances. If you need help determining which is best for you, our agents can lend their support whether you live in Texas or Florida.

10/90 Split Whole Life

The 10/90 split whole life design is a plan where 10% of the premiums are normal whole life insurance while the remaining 90% of the premiums are all paid-up additions. This 10/90 life insurance policy was created in an effort to make the most of a whole life insurance plan; however, its success is not guaranteed. Numerous other specialized plans for individual whole life insurance policies have emerged over the years, and, as with the 10/90 life insurance policy, be cautious of enrolling in one.

Whole Life Insurance Pros and Cons

Whether you live in Pennsylvania or Georgia, there is a multitude of benefits when starting a whole life insurance plan. However, while getting whole life insurance quotes has many positives, it has several negatives to consider as well. Those who intend to begin an insurance policy that builds wealth must take these drawbacks into consideration before spending their money. Here are the whole life insurance pros and cons you should know.

Pros of Whole of Life Insurance

If you are able to pay for your premiums regularly, this policy can last throughout your entire life. This is extremely useful for all who engage in the policy, whether it be whole life insurance for real estate investors or homeowners.

When using normal investment accounts, it will be taxed every year based on its built-up interest. However, whole life insurance premiums are not typically taxable, which will allow individuals to maximize their cash value accumulation.

Because your whole life insurance premiums do not change and are fixed at a flat rate, you will not have to worry about market fluctuations, unlike variable universal whole life insurance or VWL.

By taking out a loan from their policy, individuals can use the money in the event of an emergency. Additionally, they will not have to pay back their loans either, making it an insurance policy that builds wealth and does not detract from it.

Cons of Whole of Life Insurance

Although there are numerous whole life benefits, it costs a considerable amount of money, as opposed to variable whole life insurance. These higher expenses are the result of the premiums that fund the account of cash value.

Both corporate-owned and bank-owned whole life insurance policies can be challenging to comprehend due to how many components it has, meaning grasping whole life insurance in its entirety can be a complicated endeavor.

There are fewer death benefits when legacy planning with whole life insurance, primarily because it is a more expensive option than other insurance plans.

Even if the growth of whole life insurance rates can be easily predicted, it may end up being at a lower rate than other types of investment avenues.

With individual whole life insurance policies, there is little control owners have over their investments. This is because insurance companies that handle whole life insurance are capable of using their client’s cash value policy in the manner they see fit, taking it out of their client’s control.

Whole Life Insurance Tax Benefits

For individuals who wish to engage with permanent life insurance, they will be pleased to know that there are numerous whole life insurance tax benefits they will receive. Individuals have access to their money without having to worry about paying taxes for it, as whole life insurance premiums are tax-deductible, meaning they can be deducted from their taxable income. Furthermore, another advantage of whole life insurance premiums being tax deductible is that their growth over time will not be directly taxed. As an individual’s life insurance assets are not stifled by taxation, they will grow at a faster rate.

Additionally, dividend-paying whole life insurance provides tax benefits as well. These dividends are regular distributions of an insurance company’s earnings that they may give away to those who contribute money to them, such as shareholders. Because dividends are not typically taxed, they are another tax benefit of legacy planning with whole life insurance.

Whole Life Insurance Tax Benefits

If you need assistance creating a custom insurance policy, receiving whole life insurance quotes, wealth maximization, or any other matter, the talented team at IBC Global Inc is ready to serve those from California to New York and everywhere in between! Whether you wish to deal with bank-owned whole life insurance policies or corporate-owned whole life insurance policies, we’re here to help you regardless of your whole life insurance rates or if you own variable universal life insurance or VWL.