| Whole
life provides a death benefit and an accumulating cash
value. By definition, it has a fixed premium and a
level death benefit to age 100. The premiums don't
increase with age, which averages the cost of the
policy over your life. The cash value increases with
time until it equals the death benefit at age 100.
Whole life is also known as Ordinary (or Permanent)
life insurance. This type of policy never has to be
renewed or converted. The cash value is an
amount of money that you are guaranteed to receive in
the event of policy cancellation. You also have the
right to borrow against the cash value on a loan
basis.
There are
several variations of Whole life. The most common are Modified
Premium and Graded Premium. These policies
are used when whole life protection is needed, but
can't be afforded. Modified Premium policies typically
have a lower fixed premium for the first 3 or 5 year
period, at which point premiums increase. Modified
policies work well for individuals that expect to
improve their financial condition. Graded Premium
policies are similar, except the premium increases
each year for the first 5 years, and then becomes
fixed after that. Another common version of whole life
is Limited-Pay. These policies are a variation that
make it possible to stop premium payments at the end
of a specified time period without a reduction in the
death benefit. In other words, the policy becomes
fully paid prior to age 100. The most common examples
of this are 10 Payment Life, 20 Payment Life, or Life
Paid up at 65.
For
a free no obligation Whole Life Insurance quote, Click
Below:
Whole
Life Quote
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