Whole Life Insurance

When taking into consideration the idea of whole life insurance, one should be able to comprehend what it means, specifically what it implies. As opposed to a term life insurance, a whole life insurance policy is for a whole life of the insured and involves a guaranteed payout. One of the major advantages is that, once you have it, you don’t need to worry about being uninsurable later. Also, if you wish to terminate the contract, you are entitled to receiving the cash value up to the certain date.

Given the fact that you benefit from a guaranteed payout, the premium may be more expensive than that of a term life insurance of the same face amount.  Nevertheless, the cash value will usually remain the same, regardless of market conditions or the company’s performances. Besides the lump sum one receives as the death benefit, in some cases certain dividends are given from the provider’s profit.

Also, the beneficiary has no need to undergo future medical exams for the sake of the insurance.  There is another interesting fact about whole life insurance policies. Once the insured person reaches 100 years, the insurance expires and the beneficiary receives the face amount. Therefore it’s a win-win situation.  Also, you can use the policy as collateral when applying for a loan.

There are several types of whole-life insurances:whole life insurance

  1. Interest sensitive life insurance, which implies that the interest of the accumulated cash value is dependent of the market conditions.
  2. Participating life insurance, implying an insurance contract that pays dividends to the policyholder.
  3. Non-participating life insurance, the policyholder not being entitled to dividends as he does not participate to the capital gains earned by the insurer on paid premiums.
  4. Single premium life insurance, which implies a single significant premium which begins to accumulate cash value immediately.

For further details, do not hesitate to call us, where you will be connected with a licensed insurance agent to answer all your questions! You can also get free whole life insurance quotes directly on our website; just answer a few important questions to find the best policy to fit your needs.