Call Us 816-525-6159 ☰ ˟
Get A Quote Contact Us
Logo
816-525-6159
  • Home
  • Our Agency
    • AboutImage of right arrow
      • Our Staff
      • Our Locations
    • Our Providers
  • Products
    • Auto Insurance
    • Home InsuranceImage of right arrow
      • Homeowners Insurance
      • Landlord Insurance
      • Renters Insurance
    • Life InsuranceImage of right arrow
      • Term Life
      • Long-Term Care
      • Whole Life
    • Powersports VehicleImage of right arrow
      • ATV Insurance
      • Boat Insurance
      • Motorcycle Insurance
    • Surplus LinesImage of right arrow
      • Box Truck Insurance
      • Builders Risk Insurance
      • Construction Insurance
      • Contractors Insurance
      • Specialty Trade Contractors Insurance
      • Dump Truck Insurance
    • Business and Commercial InsuranceImage of right arrow
      • Business Owners Policy (BOP)
      • Commercial General Liability
      • Commercial Umbrella Insurance
    • Recreational Vehicle
    • Personal vs. Commercial Insurance
  • Get A Quote
  • Contact Us
Auto Icon Home Icon Business Icon Life Icon Power Sports Icon Surplus Lines Icon
Home > Blog > Why Consider Single Premium Life Insurance?
MONDAY, JULY 1, 2024

Why Consider Single Premium Life Insurance?

Most people pay for insurance every month. Some people pay quarterly, semi-annually, or yearly. You usually pay one large premium to start a single-premium life insurance policy. After that, you don't have to pay again.

To some people, paying a large premium isn't worth the cost. Why do others consider buying single premium life insurance?

Three Reasons to Consider Single Premium Life Insurance

These are some benefits of single premium life insurance.

1. Full Funding From the Start

The cash account of your policy will often grow quickly because you funded the policy from the first day. You do pay a larger premium in the beginning. However, you can still spend less money to buy more coverage if you prepay. You may get a bigger cash account and death benefit with single premium life insurance.

2. Living Benefits

People mainly buy life insurance to make sure they can give their heirs cash after they die. The cash account of a permanent policy may also give the policy owner tax advantages and access to cash if they need it when they are still alive. You may be able to use single premium life to help pay for nursing care, medical bills, or even living expenses.

3. Defer Taxes on Growth

You may have to pay taxes on interest you get from a regular savings account. You can defer the taxes on growth for the cash value of your life insurance policy. This allows your money to grow fast. Your heirs also won't need to pay taxes on the death benefit after you die. Many people buy permanent life insurance because of its tax advantages. floating green leaf plant on person's hand

Single Premium Life Insurance Disadvantages

The main problem is that you need a large sum of cash to begin your policy. Many companies ask for at least $5,000 to start. You may also need to be healthy enough to pass underwriting. Some health conditions may cause you to pay more for coverage or even get declined. Relatively healthy people should get accepted at a standard or better rate.

When to Consider Single Premium Life Insurance

Consider single premium life insurance if you have cash that you hope to pass to your heirs or don't plan to use for several years. You can also consider buying this product to give a child or grandchild the gift of lifetime protection.

For more information on determining the coverage you need, contact one of our agents today. We will help you find the right life insurance for your family.

Posted 10:00 AM

Tags: life insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021

  • life insurance(10)
  • auto insurance(9)
  • home insurance(7)
  • business insurance(3)
  • farm insurance(2)
  • rv insurance(2)
  • powersports insurance(2)
  • construction insurance(1)
  • long term care(1)
  • surplus insurance(1)
  • swimming pools(1)
  • boat insurance(1)
  • business insurnace(1)
  • health insurance(1)
  • powersports vehicles(1)
  • recreational vehicle insurance(1)
  • bop(1)
  • pools(1)
  • contractors insurance(1)
  • motorcycle insurance(1)
  • boat(1)

View Mobile Version
Facebook
Twitter
Google+
LinkedIn
Get Directions
Contact Us Today
Speak to an agent!
Resources
Products
Customer Service
Payment Options
Our Carriers
About Us
Refer A Friend
Blog
Contact Us
Contact us415 SW Jefferson Street
Lee's Summit, MO 64063

Ph: 816-525-6159
Fx: 816-525-4756
© Copyright. All rights reserved. Powered by Insurance Website Builder.