Whole Life Insurance

Get the Best Whole Life Insurance Products in Albany, Troy & Schenectady

When you think of traditional life insurance, you're most likely thinking of whole life insurance. Whole life insurance is the guaranteed payout insurance solution that also offers a built-in cash value, and it's a great investment for those who want to provide peace of mind and security to their loved ones after they're gone.

Capital Gate Insurance is a life, accident, and health insurance broker for New York

At Capital Gate Insurance Group, we offer the best whole life insurance products in Troy. We understand the motivations behind securing a whole life insurance quote and we do what it takes to ensure you get the greatest value out of your policy. Make sure you're getting the perfect whole life insurance policy in Albany by choosing Capital Gate Insurance Group.

What Is Whole Life Insurance?

Whole life insurance is the stable and permanent insurance policy. The policyholder pays a set premium for the coverage and the death benefit and cash value is a guaranteed amount - no matter when you pass. The interesting aspect of whole life insurance is its cash value. This investment component grows incrementally over time. It's also tax-deferred and you can even borrow against your whole life policy to structure it for tax free withdrawals. Again, life insurance with a built-in cash value.

Whole Life is the oldest form of lifetime, level-premium life insurance, dating back to at least 1759 with the formation of the first life insurance company in the United States called the "Corporation for Relief of Poor and Distressed Presbyterian Ministers". Whole life insurance is entirely guaranteed by the issuing carrier, and the payment of a death benefit is subject only to the policyholder's timely payment of a fixed and guaranteed premium and the solvency of the insurance company. Premiums are set, reserves are created, and death benefits are paid based on actuarially conservative expectations. Because of the guaranteed nature of the contracted the death benefit obligation which may span decades, the insurer needs to carefully "price" its product to deliver a reasonable return to the company's shareholders, be competitive in the marketplace, and be fiscally sustainable through "boom and bust" economic cycles.

So, just as the premium for a 20-year term policy can be expressed as a 20-year level premium on the basis of a mathematical leveling, a simple explanation for the "permanent" whole life (or cash value) forms of life insurance is that the increasing risk cost is mathematically leveled out for an entire lifetime. One essential difference between a term life insurance policy purchased with more than a 5-year guarantee period and a "permanent" whole life insurance policy is that while there is an implied reserve underlying the leveling of the term insurance policy, that reserve is typically not accessible to the policy owner. In a permanent policy, the reserve is represented by the policy cash value and must, as dictated by insurance regulation, be accessible to the policy owner. The longer the guarantee period (i.e. 20- or 30-year term), the more comparable the funding premiums (or at least their lifetime net present value) become. A term life insurance policy will not reflect the underlying reserve in the form of cash value, only in a death benefit.

Of course, there is a number of life insurance products that have evolved to meet the various needs and considerations consumers might have for their long-term (typically lifelong) life insurance purchases. Call Capital Gate to help navigate and discuss the options that best suit your needs at a certain period in your life!