Whole Life Insurance

Whole life insurance is different from other types of life insurance. For example, coverage that is available from whole life insurance is provided for you for the rest of your life. There is no expiration period that would normally cause premiums to become nonexistent if the policy has no longer been used. Whole life insurance policies are designed to build value as time passes. This gives you the chance to invest part of the cash value if you choose to do so. In addition, you have the chance to borrow against the whole life insurance policy if you so wish.

Description of a Whole Life Insurance Policy

A whole life insurance policy is designed to provide coverage for you for the rest of your life. However, in order to obtain continued coverage you will have to make sure that all of the premiums for the whole life insurance policy are completely paid for. A small amount of the premiums that you pay will be invested for you. The amount of money that you get back from the investment gives the policy the chance to build cash value as time goes on.

The amount of cash value that you obtain from this investment can be borrowed, invested or withdrawn. You can also use this cash value to pay for premiums in the future. However, it is important for you to remember that there are rules that govern what you can do with this money. In addition, the amount of money that you have to pay for the policy’s premium is normally higher than other life insurance policies. The premiums that have to be paid are normally fixed.

Types of Whole Life Insurance Policies

There are quite a few different types of whole life insurance policies. Available whole life insurance policies include single premium insurance policies, interest rate sensitive insurance policies, and traditional insurance policies.

Traditional whole life insurance policies normally provide you with a minimum rate of return that is guaranteed. In addition, the owner of the policy can choose the family investment funds that the money goes towards in other cases.

Interest sensitive whole life insurance policies feature returns that are a part of the policy’s interest rates. This means that they normally have a variable rate of return. The amount of money that you are able to receive normally depends on the overall health of the economy. This type of insurance policy is normally more flexible than other types. This is because you have the choice of raising the death benefit. In addition, you have the choice of changing other similar features. However, your options normally depend on how well the underlying investment performs. This type of whole life insurance gives you the chance to take advantage of tax benefits and death benefits. In addition, you do not have to wait for the accrual period or the ramp-up.

Benefits of Whole Life Insurance

One of the main benefits of whole life insurance includes the fact that this type of insurance policy can build up cash value as time passes. As previously mentioned, a part of the premium that you pay for your insurance policy goes towards the cash value of the policy. This cash value is available for various investments to be made. In addition, the benefits of a whole life insurance policy will never change. Once the policy has built enough value, you will have the ability to manage your investments yourself. In addition, you will not need to undergo any additional medical exams once you have obtained the policy.

Other types of insurance policies normally provide a lower rate of return than other types of investments. If you are looking for an investment that brings back a solid amount of income, there may be other options available for you. However, if you are looking for life insurance and an investment, a whole life insurance policy may be exactly what you need.

To compare whole life insurance rate quotes now, fill out some basic personal information on our easy online form. You’ll have the ability to compare rates from top whole life insurance providers in your area, and find the policy that’s best suited for your unique situation. Plus, you can save hundreds by comparing multiple quotes.