Whole and Universal Life Insurance in Chandler, AZ

It is insurance first. Cash value grows over time and can be useful, but permanent life is not an investment and should not be bought as one. Buy it when you have a lifelong need for a death benefit, and look at the guaranteed figures, not just the projections.

Whole life has a fixed premium, a guaranteed death benefit and guaranteed cash value growth. Universal life is more flexible, letting you adjust premiums and the death benefit within limits, with cash value that earns interest set by the company above a guaranteed minimum.

Usually, yes. Policy loans are possible on most permanent policies, but unpaid loans and interest reduce the death benefit and, if they grow too large, can cause the policy to lapse.

Term fits needs with an end date, like a mortgage or raising children. Permanent fits needs that last your lifetime, like leaving a legacy or providing for a dependent with lifelong needs. Many families use a mix.

Cash value is a part of a permanent policy that builds up over time as you pay premiums. It grows tax deferred, and you can borrow against it, withdraw some of it, or receive it if you surrender the policy.

Using it reduces what your family receives, and in the early years there is usually little cash value. Viola walks you through the guaranteed values table so you know what to expect.

You usually have options rather than simply losing everything. Depending on the policy, you can take the cash surrender value, switch to a smaller paid up policy that needs no more premiums, or use the cash value to keep the full death benefit for a set time.

Some policies can also borrow from the cash value to pay a missed premium automatically. Call Viola before you stop paying.

Generally no. A death benefit paid to your beneficiary is usually not subject to federal income tax. There are exceptions, such as interest paid on a delayed benefit or a very large estate.

Withdrawals and loans from cash value while you are alive have their own tax rules. Viola explains how the policy works, and your tax advisor can confirm how it fits your situation.

It is a type of universal life designed mainly for a lifelong death benefit, with little focus on cash value. It often costs less than whole life for the same amount of coverage.

The guarantee depends on paying the scheduled premium on time. Paying late or less can shorten how long coverage lasts, so it suits people who want simple, permanent protection and a steady budget.

Yes. You can name a charity, a trust or any person as a beneficiary. For a grandchild who is still a minor, a trust or a custodial arrangement is usually needed so the money can be managed for them.

Many people use permanent life insurance to leave a set amount to a cause or a family member without changing the rest of their estate plans.