Whole life insurance gives you lifetime coverage at a premium rate that does not increase with your age after you buy. In the early years of the policy, when you're a low risk, you'll pay more in annual premiums than it costs to insure you.
As you become a higher risk at an older age, the level premium eventually becomes less than the amount it takes to insure you. Level premium payments build a reserve in your policy that is used to insure you as you age. Insurance companies call this reserve the "cash value."
Click here for more about the different types of whole life insurance and the different ways to pay the premiums.
Here's some information from consumer organizations and state departments of insurance.
Whole Life Insurance
Whole life is a type of life insurance that builds a "cash value". The first 2-4 years you pay your premium, none goes into your cash value. The fees and expenses of the policy take that portion of your premium. After the 2-4 years pass, you begin to accumulate a cash value. If you want your money out of your cash value, you borrow it, typically at 6%-8% interest rate. Which, you pay the interest to the COMPANY, not back to yourself! Not only that, but when you die, the company will KEEP your cash value. Assume you have $2,000 of cash value, and your death benefit (insurance coverage) is $50,000. Your beneficiary only gets the $50,000 -- the insurance company keeps YOUR $2000 of cash value. The idea behind whole life, is that at the age of 100 you'll accumulate in your cash value your death benefit amount. So, up until that point, the insurance company takes the difference of your death benefit amount and your cash value, and they pay the difference. By the way, if you borrowed your $2,000 and then died, your beneficiary would only get $48,000!!! Look in your policy. There is a table which projects your cash value amounts throughout the years of your policy. One column says what your death benefit is. Notice how that stays level, even as your cash value goes up. It's because the cash value is NEVER REALLY YOURS!!! Your beneficiary will only get your coverage amount, NEVER the coverage amount PLUS the cash value!!!
Note that whole life policies are designed to mature at age 100. The assumption is that you will not live that lon g but if you do your premiums are considered paid in full and and the cash value in the account has reached the face value of the policy. Insurance companies at this point will issue checks for the full value and the contract is considered completed.
A type of permanent life insurance, whole life insurance is applicable for a lifetime. Generally the life insurance premiums remain fixed for the entire span of the policy, and are therefore on the higher side. With a cash value component, this type of policy has investment benefits for the insurer, which can be made accessible through policy loans or surrenders.
The key difference between life insurance and whole life insurance is that regular life insurance carries a fixed term while whole life insurance covers one's entire lifetime. Whole life insurance also accumulates a cash value that one can borrow money against.
You can call a whole life insurance policy as a "Non-Endowment Life Insurance Policy".
Whole life insurance is less flexible then universal life insurance when it comes to premiums and payouts.
There are many places where one can compare term life insurance versus whole life insurance. One can compare term life insurance versus whole life insurance at popular on the web sources such as Wealth Pilgrim and MSN Money.
Only whole life insurance,not term life.
A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.
One can get term or whole life insurance through various insurance agencies. Some insurance companies that provide term or whole life insurance include MetLife, AAA, and State Farm.
New York Life if one reputable company which offers whole life insurance. You can apply and receive quotes for whole life insurance policies online or by contacting a representative.
One of the best companies to approach to have whole life Insurance explained is Swinton Insurance. They have offices in many locations and are experts in all aspects of whole life Insurance. Alternatively you could contact Sainsburys or Tesco's who both deal in whole life insurance.
Whole life insurance varies from term life insurance because it is valid for the insured's entire life instead of just for a specified amount of time. Whole life insurance typically has premiums due each year.
One can find an explanation of whole life insurance at virtually any life insurance company's website or at their company's location. Examples of whole life insurance companies are MetLife, Geico, and Farmers.
whole life insurance...
whole life insurance
A life insurance is only good for life coverage, when you die an amount of money is given. Whole life insurance includes investments you have. Such as stock market.
A whole life insurance provides coverage for an individual's whole life. A savings components which builds overtime and can be used for wealth accumulation. Whole life is the most basic form of cash value insurance.
Generally there are 3 types of of life insurance policies:Whole Life InsuranceTerm Life InsuranceUniversal Life Insurance
The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.
Term life insurance is an insurance that is set for a specific time period, for example, one can obtain term life insurance for 30 years. Whole life insurance covers one from application to death.
Yes, Gerber offers both children's insurance and whole life insurance policies for the whole family. It only takes a brief application to get a quote right away.
There are many insurance companies that offer Whole of Life policies. At the current time More Than do not offer whole of life insurance policies instead they offer term insurance.
You have many options when shopping for whole life insurance. Places such a MetLife, Colonial Penn, New York Life, and Guardian all offer whole life insurance with different rates and terms.
Technically, there is no insurance policy called as permanent life insurance. However, you can treat whole life insurance policy as permanent since the policy covered the whole life span of the policy holder and benefit is payable to nominee in the event of any eventuality of the policy holder.
Life insurance is a more general concept that may refer to either whole life insurance or term life insurance. Whole life insurance gathers value the longer you have it, whereas Term life insurance does not obtain any value that you may use before you die. Term life insurance only pays out when you die.
Whole life insurance is not necessarily bad but it may not be right for you as it can be substantially more expensive than a term insurance. If you need life insurance but don't want to pay the high premiums on whole life insurance ask for term insurance quotes. Whole life insurance is a level premium from the time you get the insurance until you die which is good if you have an estate that will need liquid funds but not necessarily right for someone who is just looking for life insurance until their kids are grown or their mortgage is paid off
When deciding what type of life insurance to get, someone can choose between term and whole life insurance. Term insurance pays out when a person dies and whole life can be cashed in if you need the money early.