Whole life insurance offers a unique combination of guaranteed1 death benefit protection, guaranteed cash value accumulation, and guaranteed level premiums over a lifetime. Plus, generally available tax advantages that could provide an effective and powerful financial resource, such as an income tax-free death benefit to a beneficiary, tax deferred cash value growth and tax favored policy loans and withdrawals from cash value.2
Benefits of Whole Life Insurance
Guaranteed Fixed Level Premiums
Premiums are guaranteed not to increase even as you grow older or your health declines. The premium you pay today will be the same premium you pay in later years.
Guaranteed Lifetime Coverage
When you purchase a whole life policy, you are helping to ensure insurance protection for your entire life. As long as premiums are paid and policy loans do not exceed the total cash value, your coverage cannot be terminated, even if you become uninsurable later in life.3
Tax-Deferred Cash Value Accumulation
Your policy is designed to gradually build cash value each year on a tax deferred basis. During your lifetime, the cash value can be accessed as a policy loan. Accessing your cash value will, however, reduce your death benefit.
Your policy, excluding Protector 15, may earn a dividend4 that can be used to purchase additional paid-up insurance, reduce out of pocket premium, accumulate in your policy or receive in cash.
Choose a Whole Life Insurance Policy That Works For You
Everyone is different and therefore has different needs. That’s why Lafayette Life has several supplemental riders that can be added to your policy to help meet those needs. Adding a rider may require additional premium. There are seven different whole life policies, each with different benefits:
Lafayette Life Insurance Company provides the right people, tools and industry leading portfolio of products to help you pave the way for your clients to get to a flexible and secure future, faster. Our top-notch service and technology can help make doing business quicker and easier. Learn more about what makes us different.
1 Life insurance policy guarantees are subject to the timely payment of premiums. Loans, withdrawals and advances will reduce the death benefit and cash surrender value and may cause the policy to lapse. The lapse or surrender of a policy with an outstanding loan may result in taxable income. 2 Loans and withdrawals will reduce the death benefit if not repaid. Tax free assumes the policy is not a Modified Endowment Contract, the withdrawals do not exceed cost basis, and the policy does not lapse. Always consult an attorney or tax advisor regarding your specific legal or tax situation.
3 Subject to the terms of the policy, including payment of the required premiums, suicide exclusion, contestable provision and loan provision. 4 Dividends are not guaranteed and may be changed by the company at any time.
Whole Life Insurance Policy series ICC14 LL-01 1404 & ICC14 LL-03 1408. Single Premium Whole Life Insurance policy number ICC14 LL-02 1408, ICC14 LL-04 1408 & ICC18 LL-07 1801.
Loans, withdrawals and advances will reduce the death benefit and cash surrender value and may cause the policy to lapse. The lapse or surrender of a policy with an outstanding loan may result in taxable income.
Life insurance products are issued and guaranteed by The Lafayette Life Insurance Company. Guarantees are based on the claims-paying ability of the company. The Lafayette Life Insurance Company is a member of Western & Southern Financial Group, Inc. Product approval, availability and features may vary and may not be available in all states. The Lafayette Life Insurance Company and its agents do not offer legal or tax advice. The information contained herein is general in nature and for informational purposes only. Always consult an attorney or tax advisor regarding your specific legal or tax situation.
Life insurance is not intended to be used as a savings product, retirement plan, or investment vehicle. Lafayette Life’s role is strictly limited to providing life insurance policies and annuity contracts. Any other services a Lafayette Life independent agent provides to applicants and policyholders, including but not limited to financial planning, estate and retirement planning, tax planning, or investment planning, are not provided on behalf of Lafayette Life.
How Much Life Insurance Do You Need?
Figuring out how much life insurance to buy depends on your annual income and how long your family will need to rely on this income. You can quickly determine your coverage amount by answering three simple questions. For a more detailed analysis, try our advanced calculator, which takes into consideration your assets, debt, final expenses, childcare and education costs.