Editor’s note: This is the third in a four-part series on exploring the benefits of life insurance. The final part will appear in the March 2 issue of the AFN.

A certain peace of mind comes with knowing that you’ve taken steps to help protect your loved ones’ financial future. While all types of life insurance can give you this sense of comfort, whole life insurance offers permanence that allows you to plan ahead.

Most whole life policies contain several important features: a level death benefit and level premium payments, which means the amount you pay doesn’t change. A whole life policy also may accumulate tax deferred cash value over time.

The major differences between term and whole life insurance are the length of coverage, premium and cash-value components. A term life policy provides coverage for a fixed period of time, with premium payments that increase gradually as you get older, and does not accumulate cash value.

Subject to policy limitations, you may be able to borrow against the cash value of your whole life policy. You can also collect any cash value in full – less any surrender fee and outstanding policy loans – if you decide to end the policy.

With a level premium and growing cash value, whole life insurance is an option worth considering for people who value those features. Interested persons should contact an insurance agent they trust to learn if it’s an option that will work for them.

• Jay Gandee has been an agent for American Family Insurance since 2011. His office is located at 4730 E. Warner Road, Suite 12, in Ahwatukee. Contact him at (480) 785-7777.

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