TL;DR: Individual whole life insurance offers lifelong coverage with a built-in savings component.
Main points:
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Builds tax-deferred cash value you can borrow from
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Provides guaranteed death benefits to protect loved ones
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Ideal for long-term planning, estate support, and financial legacy
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Maximize it by tracking value, using dividends, and reviewing regularly
Individual whole life insurance offers lifelong coverage and builds value over time. For policyholders in New Hampshire and Vermont, it can be a solid tool for financial stability. But many don’t take full advantage of its features. This guide explains how to make your policy work harder for you.
How Does Whole Life Insurance Work?
Individual whole life insurance works by providing coverage for your entire life as long as you pay your premiums. It combines a death benefit with a savings component.
Unlike term insurance, which only lasts for a set number of years, whole life insurance stays in force permanently. This makes it a good choice for those who want long-term financial security.
Paid-up additions are extra amounts of life insurance bought using policy dividends. They increase both the death benefit and the policy’s cash value without requiring more premiums.
Does a Whole Life Policy Have Cash Value?
Yes, a whole life insurance has cash value because this part of the policy grows steadily over time. You can borrow against it, withdraw from it, or use it to pay future premiums.
A whole life insurance policy’s cash value component builds tax-deferred, meaning you do not pay taxes on the gains while they grow. Over the years, it can become a useful financial tool.
It is for this reason that many people in New Hampshire and Vermont who are shopping for life policies choose individual whole life insurance.
What Does Whole Life Insurance Cover?
Whole life insurance pays a death benefit to your beneficiaries when you pass away. This money can cover funeral costs, debts, and living expenses. It helps protect your family from financial hardship. Some policies also include coverage for terminal illness or allow early access to funds in certain cases.
Who Should Get Whole Life Insurance?
Whole life insurance is a good fit for people who want permanent coverage and steady cash value growth. It works well for parents, small business owners, and high earners who want to leave a legacy or cover estate taxes.
Tips to Maximize Your Individual Whole Life Insurance
To make the most of your individual whole life insurance, follow these practical steps:
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Review your policy every year to make sure it still matches your goals.
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Track your cash value growth regularly to understand how your money is working.
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Ask about policy riders, like waiver of premium or accelerated death benefits.
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Keep your beneficiaries up to date to avoid delays or disputes.
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Coordinate with your estate plan so the benefit supports your long-term financial goals.
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Use dividends to buy paid-up additions, which increase your cash value and death benefit.
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Work with a local agent in New Hampshire or Vermont who understands your market and regulations.
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Avoid policy loans unless needed, since unpaid loans reduce the death benefit.
Make Your Policy Work Harder
Whole life insurance does more than protect your family. It builds value and supports long-term planning. Small actions, like tracking your cash value or using dividends well, can add up over time.
If you’re in New Hampshire or Vermont, review your policy and talk to a professional who knows your area.
Learn more about our individual life insurance here.
This post is for informational purposes. The details and conditions of insurance policies vary. We always recommend speaking with an agent to understand the terms of your existing policies and the policies you plan to purchase.
To consult with an insurance advisor, call 800-392-6532 or email insure@colby-group.com.
