A lifetime of protection: Certainly that’s the goal for folks deciding to buy whole life insurance. With this type of insurance, you are guaranteed coverage from the day you buy the policy until the end of your life, as long as the premiums are paid.
Those purchasing the Gerber Life Whole Life Policy1 want to gain peace of mind by having a life insurance policy that provides security for their loved ones in the event of their death. However, another feature of this type of policy that’s a big plus: cash value, also known as “policyholder’s equity.”
Paying toward a rainy day
We all want to be financially ready for life’s ups and downs, but doesn’t it often seem as if unexpected expenses always pop up at exactly the wrong time? When that happens, people with whole life insurance can find that they have a kind of financial security blanket. They can borrow against the available cash value that has accumulated over the years yet still keep their policy in force. Or, they can turn in the whole life policy for the cash value available.
Where does that reservoir of cash come from? With Gerber Life Whole Life insurance, Gerber Life sets a portion of each premium payment aside. The longer the policy is held, the more those dollars grow.
Determining your policy’s cash value
Just how much cash will be available at any point in time depends on a number of factors, including your age, how long you’ve had the policy, the policy’s death benefit amount and whether there’s any outstanding debt against the policy from previous loans. Cash value will be greater in the later years of a policy than in the early years, but the bottom line is that ready cash can be available should a need arise.
A policyholder who takes a loan against the cash value may either pay back the loan with interest* or have the amount owed deducted from the death benefit when it is paid. The policyholder may also choose to surrender the policy and have the amount owed deducted from the available cash value.
Utilizing “paid-up” insurance
Another way to benefit from the accumulated cash value of this whole life policy is to stop paying premiums and, at the same time, keep some of your life insurance coverage. This is called “paid-up insurance.” Exactly how much coverage you are eligible for once you stop premium payments depends on how long you have had your policy and your age at the time you stop making the payments.
Individuals between 18 and 80 years of age may apply for the Gerber Life Whole Life Policy2. (The policy is not available in Canada.) Death benefit amounts are $25,000, $50,000, $75,000, $100,000, $125,000 and $150,000 or more, up to $1 million.
Once your Whole Life Policy has been activated, your pre-selected premium amount will never increase. That’s something you can count on – just as you can count on the ability for cash value to build for a rainy day.
* Policy loan interest rate is 8%
1 Policy Form ICC13-SWLP and Policy Form Series SWLP-13
2 Policy Form ICC13-HWLP and Policy Form Series HWLP-13