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 cash values 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 dividends 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.
Term life insurance is life insurance in it's simplest form. These policies stay in force for a specific number of years, for example, 5 years 10 years etc.
Whole life insurance is the plan of choice for many people. There are many variations to this plan.
Universal life insurance was designed with the express intention of combatting the venerable whole life insurance policy.
Are you looking for quality term insurance quotes? Have you determined how much you need? Do you know what type of term insurance is best for you?
In many cases it is a good idea to buy term insurance online. Some people know just how much life insurance they want to buy before they get online.