What is whole life insurance? With the recent chatter brought about by the recession interest in whole life insurance.
Whole life insurance is a contract between an individual and a life insurance company stating that if the individual dies the company will pay a specific sum to specified beneficiary.
The responsibility of the individual is to pay the premiums as per the contract. The individual can keep the policy for the rest of his or her life.
Some companies use age 100 as their standard. This policy can never be taken away from you. What is the whole life insurance policy about?
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Some people put it this way. Whole life insurance is much like an endowment to age 100. The premiums for this type of coverage are much higher than those of term life policies but there are valid reasons for that.
Cash Or Loan Values
Whole life insurance has
which are payable to the owner of the policy upon surrender of the
policy any time in the future. Term policies have no cash values.
These cash values are lower than the premiums paid initially but in the long run can amount to a considerable sum.
If the policy owner should find himself or herself in need of quick cash about 80% of this money can be obtained in the form of a loan from the life insurance company.
If your policy is a participating policy
will accrue and this money is also available to the owner of the policy
if the company performs well enough to declare a dividend.
This cash, incidentally, may be added to your cash value upon surrender or upon your request for a loan. There are several dividend options available.
What is a whole life insurance policy? Whole life is the most comprehensive of life insurance policies. It does everything a life insurance policy can do.
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Death proceeds from 10 year life insurance can be in lump sum form or incomr form
The 5 year term life insurance policy has been around in insurance circles for a very long time. It can be sold as a policy or as a rider to a permanent life insurance policy.
The 20 year term insurance policy is one of the most sought after life insurance policies.
Take a look at 20 pay life insurance. Most people know that you buy whole life insurance if you want to be covered for the rest of your life even if you live to age 100.