Learning about and purchasing insurance can be an overwhelming task. There are different types of insurance to choose from, but you need to find one that meets your needs. Like home insurance, your Church’s current situation and financial goals are unique. Many ministry leaders tend to get caught up in the complexities of universal and whole life insurance. Here’s everything you need to know:
What Is Whole Life Insurance?
This is a type of insurance that will cover you for a lifetime. This is ideal for when you have a long-term responsibility such as managing a church. If you pay the premiums, your beneficiaries will receive the death benefit once you die.
Whole life insurance will combine coverage with your savings. The insurance company you choose will transfer a section of your premium payments into an investment account. This means, that the value of your cash will increase with every premium payment. Whole life insurance is designed to fill a person’s long-term goals and it’s important to ensure it’s running as long as you live.
Why Choose Whole Life Insurance?
Here are some of the benefits of choosing whole life insurance:
- You’ll get a fixed level premium that won’t increase over time.
- You can take loans.
- You’ll get a fixed death benefit.
- They can pay dividends from the insurance company.
What Is Universal Life Insurance?
With a universal life insurance policy, you can adjust the amount you’re paying each year after assessing the policy’s cash value. Then, depending on this cash value, you can use it for premium payments, or leave it alone so that it can accumulate value over time.
When you buy a universal life policy, your insurance company will establish an interest credit rate that’s outlined in the contract. However, what’s important is that if the insurer’s portfolio earns more than the interest rate, the company will then credit it to your policy. As compared to the whole life policy, a universal life policy can earn more in some years.
What Are The Differences Between These Policies?
- Universal life policy is more flexible as compared to whole life.
- The interest on a whole life insurance policy is fixed, whereas, in the case of universal life insurance, this can depend on the interest rate environment.
- Whole life policy offers a set death benefit, level premiums, and has growth potential.
Church Insurance Agents
Want to learn more about which insurance policy is right for your church? We’ve got you covered. Integrity Now Insurance Brokers is one of the top church property insurance companies in California. We provide church insurance coverage at competitive prices. Contact us today to take care of all your insurance needs.