How Does a Whole Life Insurance Policy Work?

When you need life insurance coverage, there are many choices to make. There is term life, whole life, and many different coverage amounts available. If you need life insurance, or you want more of it, contact us at Commonwealth Insurance Center in Williamsburg, VA to speak with an agent about your insurance needs.

Lifelong Insurance

One reason that these policies are called whole life is that they are in place for your entire life. Once the policy begins, the insurance company can’t cancel your policy as long as you keep up with the premium payments. This is a preferable way to have insurance for many people because it isn’t only good for a term that expires as term life does. As long as the premiums stay up to date, the death benefit will eventually be paid. Many of those who need life insurance find this a much simpler arrangement than trying to get a new term after one term has ended with term life. 

Building a Cash Value

Another attractive feature of these policies is that as the policy is paid, it begins to build a cash value. This value is there for you as the insured to borrow against at any time. When it is borrowed, it must be paid back to the policy. If it isn’t paid back before your death, the death benefit will be the amount listed in the contract minus the amount that was borrowed. 

Get Your Life Insurance

If you need life insurance, there’s no reason to wait. Getting your policy in place will bring you and your family peace of mind. Call us at Commonwealth Insurance Center in Williamsburg, VA to make your appointment with an agent.