Whole life insurance policies are permanent policies. This means that the whole life insurance policy must be paid on throughout your lifetime. A term policy is different because it is purchased for a set amount of time and when that term is over, the policy has to be renewed with higher premiums or turned into a permanent policy. With whole life, there is no renewal or conversion involved.
Whole life insurance policies have the same premium rates throughout the time the policy is in force. As long as your payments are timely, the price is locked in. The money you pay in to a whole life policy builds cash value, meaning you can make money on your policy. The result is a modest dividend on your payments. Dividends on whole life policies can be taken immediately or applied to the price of your premiums to lessen the monthly cost. This money is exempt from taxes and so does not have to be counted as income.
You may withdraw from or borrow against the face value of your whole life policy. If the money is not replaced before your death, beneficiaries will receive only the money that is left.
Flexibility is not part of a whole life insurance policy. The insurance company is in charge of investments; and the face value and premiums cannot be altered by your authorization. You do not have the option of lowering monthly premiums or increasing the face value of such a policy.
The benefits of whole life lie in the dividends you can make and in financial benefits to chosen beneficiaries. If you do not want to mess around with investments and do not care about raising the face value of your policy, then whole life insurance is the perfect choice for your busy lifestyle.
About the Author:
You can seek information on Whole Life Insurance Definitions to explore the secrets of best suitable policies for you. Please feel free to visit us at http://www.wholelifeinsurance-explained.com/
0 comments:
Post a Comment