|
|
|
| |
whole life insurance
W
hole Life Insurance is a basic type of permanent life insurance that can provide a
lifetime protection. Premiums must generally be paid for as long as the policy is
in force. Whole Life Insurance policy differs from Term Life Insurance in that it
provides investment options. A share of the premium goes for life insurance, while
the remaining premium amount goes into an investment account. This account can be
either an interest-bearing account or a variable (stocks and bonds) investment account.
You can instantly calculate the amount of whole life insurance you require with our
whole life insurance calculator. Get your Free Whole Life Insurance Quotes from us
in minutes!
Unlike term insurance, a whole life insurance policy pays a death benefit no matter
when the insured dies. Naturally, the premiums usually need to be paid for the
duration of the lifetime as well. When you first take out whole life insurance
quotes for a policy, the premiums can be several times higher than you would pay
initially for the same amount of term insurance. But they are lower than the premiums
you would eventually pay if you were to keep renewing a term policy until your later
years.
Major Benefits of Whole Life Insurance Policy:
- A Whole Life Insurance policy will cover your entire life assuming you pay the
premiums regularly.
- Premiums usually remain the same.
- The cash value grows on a tax-deferred basis. If you should decide to cash in
your policy, you'd only be required to pay tax on the net gain.
- One of the many advantages of whole life insurance is that it can eventually
become Paid Up. This could mean that you are no longer required to pay premiums.
- Insurance protection with saving benefits.
Depending upon the premium payment period, the types of whole life insurance are
divided into two. "Straight life", "ordinary life", "whole life", and "continuous
premium whole life" – are the common terms used to describe the first type of whole
life insurance contracts. The second type of whole life contract is termed as “limited
payment whole life insurance” contracts.
There are some living benefits of whole life insurance policy as compared to
term life insurance. Through the cash value build-up in the policy, a policy owner
has a ready source of funds that may be borrowed against. These funds could be used
for anything from an emergency to pay off a mortgage, and so on. In addition, since
whole life insurance is considered property with a cash value, it may be used as
security for loans. However, if a loan is outstanding at the time the insured passes
away, the amount of the loan plus any interest will be subtracted from the death
benefit before it is paid.
We at Cheap Insurance Rates know how important your life insurance is to you,
that is why we provide you with several whole life insurance plans. Our cheap insurance
rates for whole life will help you find one that best personally suits you. If a whole
life insurance policy doesn't suit you, we also offer a wide variety of other forms of
life insurance for you to choose from.
Quick Points
Things it comprises of :
It pays a death benefit to the beneficiary you name and offers you a low risk
cash value account and tax-deferred cash accumulation.
It provides a fixed premium which can't increase during your lifetime as long as
you continue to pay the planned amount.
It allows the insurance company to exclusively manage the cash value account in your policy.
It provides you the option to receive dividends from your policy or apply them to reduce payments.
It offers you the right to withdraw from the policy during your lifetime.
Things it does not comprises of :
It doesn't offer the account flexibility to invest in separate accounts
such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different
accounts or to move your money between accounts.
It doesn't offer premium flexibility.
It doesn't offer face amount flexibility.
|
|
|
|
|
