NEW YORK, NY / ACCESSWIRE / July 4, 2024 / Whole life insurance offers lifetime insurance coverage and a cash value component in exchange for paying premiums. They can range from traditional policies with regular death benefits to senior life insurance policies that may guarantee approval or let the applicant skip underwriting questions.. Regardless, whole life insurance can help parents protect their families and give them a jump-start on the road to financial independence. This article will discuss several reasons parents should consider applying for a whole life insurance policy.

1. Can help provide the whole family with added financial security

If a parent passes away, the remaining parent may not earn enough to support themselves and their children on their own. Fortunately, a whole life insurance death benefit can help with the deceased parent's loss of income. This helps the remaining parent continue to provide for their children and work toward savings goals unimpeded.

2. Can help fund children's college education

Paying for children's college education can get expensive. While certain investment accounts exist to save for college, whole life insurance can offer an additional vehicle through the cash value component. Part of each premium payment goes into this component, growing tax-deferred at a fixed interest rate. Once it grows large enough, the policyholder can tap into it to help pay for college in two ways:

• Borrowing: Life insurance loans have low interest rates and no repayment date. The policy doesn't lapse as long as the cash value exceeds the loan balance.

• Withdrawing: Withdrawals may be allowed, but keep in mind that withdrawing money from a policy could reduce the death benefit and create tax consequences.

If the policyholder surrenders their policy, the insurer pays them the cash value minus surrender charges. Alternatively, if the parent passes away before or while their children are in college, the death benefit can help cover costs.

3. Can offer an emergency fund

An emergency fund offers a financial cushion in case of unexpected events, such as job loss or a car breakdown. They help people avoid debt while covering the costs of the emergency and other living expenses.

The benefits can help the remaining parent to set aside enough for an emergency fund. Furthermore, the policyholder can use the cash value component while they're still alive, tapping into it via withdrawals or loans to pay for unexpected costs.

4. Can help parents with future estate planning

Whole life insurance can play a critical role in estate planning. The death benefit payout can be structured to offset estate taxes, preserving the estate's value for heirs. By bypassing the probate process, the proceeds from a policy can be distributed to loved ones more quickly, avoiding delays and administrative costs. This seamless transfer of wealth can help policyholders protect their legacy and ensure that their loved ones are provided for according to their wishes.

The bottom line

Whole life insurance can help parents protect their partners and children in case the worst happens and grow cash value in the process. The earlier someone gets a policy, the lower their premiums may be. By considering the unique needs and priorities of their family, parents can leverage whole life insurance to build a legacy of financial security and peace of mind that extends beyond their lifetime.

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.

68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.

Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).

This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.  

Aflac does not offer Universal or Variable Universal life insurance.

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Senior PR & Corporate Communications contact: Angie Blackmar, 706-392-2097 or ABlackmar2@aflac.com

SOURCE: Aflac