The Benefits of Whole Life

If you are a “baby boomer” nearing the age of retirement and you bought whole life insurance when you were in your twenties, you are really happy with the decision you made when you were younger. If you are a millennial just starting out, your chance to buy whole life is right now.

The key to understanding long-term value is to realize that you invest in something before you really have a need for it so that as you get older it is ready to help you.

Do I have to die for life insurance to be worth something?

Facing the possibility of one’s death is not pleasant for anyone. Life insurance gets a bad rap because of this. However, the death benefits for life insurance are supposed to help the ones you love who are left behind and that gives you some comfort. Nevertheless, there are many more self-interested reasons to get life insurance.

Beat the Odds – While You Build Cash Value

Imagine you get whole life insurance and you pay the same amount monthly for decades. It is not such a big amount if you start when you are young. The younger you are when you start, the lower the monthly premiums can be.

What happens with whole life insurance is that it builds up value over time. This is called “cash value.” Also, each year life insurance pays a dividend that can be re-invested in the life insurance, thereby increasing the cash value or the dividends can be taken out when paid.

As the cash value increases, you can borrow against it. Usually, these loans are at very low-interest rates, which is really helpful while you are still alive.

After many decades, a person may reach the age when their whole life insurance is “paid up,” which means there are no further premium payments necessary to pay to receive the death benefit.

This is what we mean by beating the odds. That lucky person can either leave the death benefit in place for any heirs to inherit or in some cases can cash out the policy and receive a lump sum payment.

What happens when you beat the odds, depends on the type of life insurance you have, so talk this over with your agent at Allegiance Insurance Agency, serving Richardson, TX and the nearby area.

Call to speak with your agent at Allegiance Insurance Agency in Richardson, TX to get a quote for life insurance or use the super-easy online form to request a quote.

Should I Have Business Interruption Insurance on My Commercial Policy?

Business interruption insurance is available to business owners who have to close their businesses. It’s not typically included in general commercial policy but is instead available as a rider (or add-on to the policy). This form of insurance can be extremely helpful to people in Richardson, TX, but not everyone will need it. Allegiance Insurance Agency wants you to know the specifics before making the decision. 

Covered Events and Shutdowns 

The idea behind business interruption insurance is that if you can’t make money due to a covered event, you’ll still have some degree of income coming in. For example, let’s say you run a retail clothing store in Richardson, TX. You make a certain amount of revenue during the weekdays, but the vast majority of your profits are earned on the weekends.

If your store sustains water damage and needs to be closed for two weeks due to repairs, you’ll miss out on a whole half month’s worth of sales. You’ll also be handling the specifics of the repair process, and likely too busy to think about much else. Business interruption insurance will take into account your weekly numbers before providing you with funds to cover your loss of income. 

A Policy for You 

If you own a company where you can work from a different location if your regular one undergoes damage, you likely won’t need to purchase business interruption insurance. However, you may still need to consider the time and effort needed to restore your location. If you want to learn more about who can benefit from this form of insurance, call Allegiance Insurance Agency today. We can help you consider what it will really mean to handle your responsibilities and maintain a business at the same time.