How Does Whole Life Insurance Work?

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There are a few different areas of whole life insurance. Find out how whole life insurance works with help from a dedicated insurance professional in this free video clip.

Part of the Video Series: Insurance Help
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Video Transcript

Hi, my name is Doug Levi. I'm principal agent and owner of Strategic Insurance Services. And today I'm going to talk to you about How Does Whole Life Insurance Work? There's really a few areas of whole life insurance. The first area is the death benefit. Simply, that means in the event of a claim, I die, my family is going to get a pot of money. Whatever that amount is. It could be $100 thousand, could be $500 thousand, could be a million. The second thing, and what really distinguishes whole life insurance is your going to build cash value. So each month when I pay my premiums at a carrier, part of my money is going to go to an account to make sure that if I die, my death benefit gets paid out. Another part of that money is going to go and it's going to sit in an account that's going to accumulate value. I tell clients to think of this as long term savings, maybe somewhere to a long term government bond, or a long term CD. The third thing and one of the most important with whole life insurance is that it's permanent. You might often hear it referred to as permanent life insurance. And when I say it's permanent, it's going to go forever. In other words if you live to be 100 years old it's still going to be in force. So you can ensure that when you die, the benefit's going to be there. That being said, whole life insurance is a little bit more expensive than term insurance. But there are these additional values and benefits like the cash value. And that is locked in forever. This has been How Does Whole Life Insurance Work? If you'd like more information on life insurance you can go to our website which is wwwtampabayinsurance.net. My name is Doug Levi. I'm with Strategic Insurance Services.

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