Whole Life Insurance 20 Year Pay

Whole life insurance 20-year pay is a great way to add some extra certainty to your life insurance portfolio. While it increases the premiums, it guarantees that you will have a death benefit for your beneficiary in the future, so long as all premiums are paid.

What is 20 pay whole life?

A whole life insurance policy with a 20 pay option means that all premiums required to keep the policy in force for your entire life will be paid in 20 years.

Benefits of 20 pay

1. Higher cash values due to higher premiums initially
2. Able to take policy loans sooner due to higher cash value, great for investors or businesses
3. Possibly pay off prior to retirement removing the expense while guaranteeing the protection

Whole life insurance benefits

1. Fixed and level death benefits and premiums
2. Guaranteed cash value growth
3. No risk of exposure to stock market fluctuation
4. Borrow your cash value for any purpose at any time.
5. Tax-free death benefits to the beneficiary.

Customizable policies

Riders are a fantastic way to get additional benefits or have your policy work differently for your specific situation and desire. Some example riders are:

1. 10, 15, or 20 year pay whole life insurance
2. Term riders for spouses and children. They can be convertible to permanent policies without evidence of insurability as well. This can be a great option for those that have had a health situation that makes it difficult to get insurance.
3. Accidental death benefit rider pays double the death benefit to beneficiaries.
4. Single premium paid-up additions rider creates a policy in one lump sum that requires no more premiums. With this option, you could immediately start investing to create cash flow, fund a business, etc. Though the loans would then need to be repaid or they come out of the death benefit. If repaid you can leverage the policy to increase the cash value, though care is cautioned so it doesn’t become a modified endowment contract which will cause a taxable event (though maybe you don’t mind this happening).
5. Accelerated benefit riders give you the ability to receive up to 50% of the death benefit if diagnosed with a terminal illness with a life expectancy of 12 months or less.
6. A guaranteed insurability option rider gives you the ability to buy additional life insurance coverage without evidence of insurability, though at specific ages. Marriage and childbirth are alternate options as well.
7. Waiver of premium benefit riders will pay the policy premiums if they get disabled within the terms of the rider.

Coverage amounts

Most companies start their coverage at $10,000 and go up into the millions, with 1-4 being very common. Higher is possible though underwriting becomes more stringent.

Issue age for whole life policies generally is between 75 and 80 years old. The younger one is though the more likely you can get a higher death benefit.

Better use of death benefit with whole life insurance

There is a lot of talk in the term vs whole life crowds that term is superior simply due to lower rates, however, a whole life insurance policy that is focused on cash value accumulation can often exceed term policies when utilized properly.

If you pick a whole life insurance policy with a term rider, somewhat lower death benefit, and paid-up additions rider it can be used to capture a good portion of the money one earns, grow it, protect it, and create a legacy for your family for years to come.

Ask me how you can get started today.