Maine Life Insurance Quotes

One of the options when purchasing life insurance is to choose Maine whole life insurance.  Buying whole life insurance requires a more in depth understanding of what this type of insurance has to offer.  Maine whole life insurance is also called permanent insurance as it is a combination of life insurance and an investment that will cover you for your entire life.  There are different types of whole life insurance, if you choose a participating Maine whole life policy it will pay dividends when the company has earnings which you can invest in your cash account or have sent to you.  You can also choose a non-participating policy which does not pay dividends but may be cheaper.  Both types of policies have cash accounts and will cover you for your entire life.  There are also options in how you pay for your policy, you can pay annually the same premium for life (level premium whole life), pay larger sums on a less regular basis (limited payment whole life) or pay one lump sump (single premium whole life).
As an investment, your Maine whole life insurance has a cash account that can be used in different ways.  You can leave the money in the cash account to increase the amount payable to your beneficiaries, you can borrow against the amount in your account or you can withdraw the money there.  Another option is to use the money built up over the years to pay for the premiums.  If you are going to use your cash account, it is recommended that you borrow money against the cash account as you do not have to pay income tax on it.  There is a limit to the amount of money that can be put into Maine life insurance policy so that it still qualifies as life insurance.  This is governed by the Tax, Equity, Fiscal and Responsibility Act (TEFRA), they set the limit to the amount that can be invested due to the fact that the value in a Maine whole life insurance policy is not taxable.  There is also an element of risk as in any investment, you would need to look at how much control you have over where the money is invested or how the investment history looks for the life insurance company with the type of policy you’re buying.
If you have any questions regarding Maine life insurance, you can contact the Bureau of Insurance in the State of Maine at 1-800-300-5000 or at www.maine.gov/pfr/insurance