Let us take a look at whole life insurance policies and see if you can benefit from buying one.
What are whole life insurance policies all about anyway?
Some people describe it as life insurance for the rest of your life. Others say it is coverage to age 1oo.
There are some who see whole life as the most costly type of life insurance coverage. What do I say? Examine the description below.
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This policy guarantees that upon your death regardless of how you die, other than by suicide, the life insurance company will pay the sum insured to your beneficiary. Whole life lasts for the rest of your life even if you life to age 100. The premiums are level, as well as the face amount, for the duration
This policy has guaranteed cash values. Here is how this policy works. After your policy has been in force for a while a certain amount of cash is applied to your policy. This happens each year. The older the policy the higher the guaranteed cash value. Interest is also added to this cash value. Cash values are really a return of premium.
If you have a participating whole life policy you will earn a dividend at the end of each year if your insurance company manages to do a good job keeping expenses down and investing in profitable ventures. Dividends are not guaranteed but are based on the performance of the life insurance company.
Dividends can be applied to your policy in many different ways.
Whole life insurance costs more than term insurance simply because it is guaranteed for a longer period than term insurance.
Most people buy modified versions of the whole life policy created by different life insurance companies. The intent of the modified versions is to offer a product that costs the consumer less without the life insurance company putting themselves at too much risk.
Take a look at a more detailed description of the whole life insurance policies.
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.