Becu's Whole Life Insurance Offering: What You Need To Know

BECU, in partnership with Covr, offers its members access to affordable life insurance options. Life insurance is an important part of any financial plan, protecting your loved ones against the loss of your income if something happens to you. BECU members can get a no-cost quote from Covr in minutes, compare rates from top companies, and secure coverage without a medical exam. While it is unclear whether BECU offers whole life insurance, its partnership with Covr provides access to various life insurance options, including permanent life insurance, which may include whole life insurance.

BECU's partnership with Covr

BECU has partnered with Covr to give its members access to affordable life insurance options. As a BECU member, you can access customized life insurance solutions that can help you find affordable coverage that suits your needs.

With Covr, BECU members can get a no-cost quote in minutes by answering a few short questions. They can also compare rates from top companies and secure coverage the same day, often without a medical exam. Covr's licensed specialists are available in all 50 states, and telephone support is always available.

Life insurance provides a cash benefit to your beneficiaries when you die. This money can be used for funeral expenses, living expenses, college tuition, mortgage payments, and everyday bills and expenses. It protects your family's financial health and can be paid out in a tax-free lump sum.

BECU provides access to insurance products through its relationship with Covr Financial Technologies, Inc. ("Covr"). Covr provides direct-to-consumer insurance solutions, and BECU members can make their own independent decisions about pursuing coverage. BECU licensed insurance entities may earn commissions or referral fees for products purchased through Covr.

Life insurance as a financial asset

BECU, a credit union, has partnered with Covr to give its members access to affordable life insurance options. Life insurance can be an important part of your financial plan, protecting your family's financial health.

Life insurance can also be a financial asset during your life. Some life insurance policies can become a financial asset for you to use during your lifetime, much like an IRA or mutual fund. These life insurance policies allow the owner to build cash value over time and provide access to this cash value. In some cases, you can take a withdrawal, and in others, you can borrow against your policy.

There are two main types of permanent life insurance that can be used as an asset: whole life insurance and universal life insurance.

Whole Life Insurance

This is the most common type of permanent life insurance. In addition to a death benefit, it offers the policyholder the ability to accumulate cash value. A portion of the premium you pay every month goes into a cash value account. The cash value accumulates over time at a minimum guaranteed rate indicated by your policy. The premiums on these policies typically don't increase over the life of the policy.

Universal Life Insurance

Universal life policies function similarly to whole life insurance. They allow policyholders to grow an asset by accruing interest over time that can be borrowed against. However, the premiums aren't set and are subject to change. There are also no guarantees on the rate your money will earn over time. Under the universal life umbrella is "variable universal life insurance," which enables policy owners to invest their earnings in the accounts of their choosing, potentially earning more over time.

Using Your Life Insurance as an Asset

There are several ways to use your life insurance as an asset:

• Take a loan from your policy: You can borrow against the cash value of your permanent life insurance policy. However, read the fine print, as any outstanding balance that you owe will be subtracted from what your beneficiaries inherit.
• Use your policy as collateral for a loan: In some cases, you can use your life insurance policy as collateral for a loan, which may make it easier to get approved or get a better rate.
• Withdraw funds: You can make withdrawals from your policy that are yours to keep. However, if your withdrawal dips into your investment gains, you'll need to pay taxes.
• "Accelerated" benefits: Some policies enable you to receive benefits during your lifetime if an unexpected or extreme medical emergency arises, such as cancer or a heart attack.
• Surrender the policy (cash out): Cancelling your coverage will get you back the cash value you put in, less any fees your insurance company may charge.

Whole life insurance vs. term life insurance

BECU has partnered with Covr to give its members access to affordable life insurance options. However, it is not clear what types of life insurance are on offer.

Whole Life Insurance

Whole life insurance provides coverage for your entire life cycle. It tends to be more expensive because it serves as an investment that grows throughout your lifetime, tax-free. The premiums will remain the same and the death benefit is certain. The cash value will grow in a tax-deferred account at a secured rate. This is a popular choice for those looking to maximize their financial potential.

Term Life Insurance

Term life insurance provides coverage for a set term or a specific amount of time, usually between 10 and 30 years. It is typically cheaper than whole life insurance because there is only a payout if the policyholder passes away during the specified term. Term life insurance is a good option for those who want affordable coverage and for young families due to the lower upfront premiums.

The main difference between whole life insurance and term life insurance is that whole life insurance covers you for your entire life, whereas term life insurance only covers you for a set number of years. Whole life insurance is also more expensive than term life insurance because it serves as an investment and accumulates cash value over time. Term life insurance is a good option for those who want affordable, temporary coverage, whereas whole life insurance is better for those who want lifelong coverage and are less concerned about cost.

BECU's Financial Advisors

BECU has partnered with Covr to give you access to affordable life insurance options. As a BECU member, you have access to customized life insurance solutions that can help you find affordable coverage that fits your current needs. With Covr, you can get a no-cost quote in minutes, compare rates from top companies and get assistance from licensed specialists in all 50 states.

Life insurance provides a cash benefit to your beneficiaries when you die. This money can be used for funeral expenses, living expenses, college tuition, mortgage payments, and everyday bills and expenses. It protects your family's financial health and can be paid out in a tax-free lump sum.

There are different types of life insurance policies, including term life insurance and permanent life insurance. Term life insurance is less expensive and offers a flexible coverage period, but it does not have any residual value. Permanent life insurance allows you to invest in conservative investments and build a cash value accumulation that you can tap into during your lifetime. It also has a guaranteed death benefit and cash value growth.

BECU's insurance planning

The Financial Advisors at BECU Investment Services can assist with retirement and estate planning, helping you build a comprehensive financial roadmap. They offer strategies to protect your income, provide a steady income during retirement, and shield your loved ones from the financial burden of long-term assistance if you need it. Their advisors can also help you manage your risk against catastrophic losses and make sure your estate planning strategy aligns with your wishes and evolving circumstances.

Furthermore, BECU recognizes the importance of insurance as a financial asset. Certain life insurance policies, such as permanent life insurance, can build cash value over time, allowing you to borrow against the policy or withdraw from it tax-free. This feature transforms insurance into a tool that can be used during your lifetime, providing additional financial flexibility.

Overall, BECU's insurance planning services aim to provide peace of mind, ensuring that you and your loved ones are financially secure, both in the present and in the future. By offering access to various insurance options and expert financial guidance, BECU helps its members make informed decisions about their protection and wealth management.

Frequently asked questions