Career Employment Strategies

Monday, February 12, 2007

Whole Life Insurance Explanation

A whole life insurance account should be required reading for anyone about to purchase life insurance. Whole life, in my low opinion, have in recent old age got a bad rap. People be given to purchase term life insurance because it is cheaper. Although I believe that a good term insurance can take care of the insurance needs of most people, a good whole life insurance policy is deserving looking at.

Guaranteed Death Benefit

The death benefit of a whole life insurance policy is guaranteed to remain degree for the continuance of the policy. If you believe about it, that agency a lifetime. That type of warrant cannot be sneezed at. The insurance premiums of your whole life insurance policy is also guaranteed never to increase. This is also a very of import feature. The policy can never be cancelled by the insurance company.

Cash Value Accumulation

A whole life insurance policy have cash values, that cash is available to you, if you should need it, at any time. You can give up your policy and get the cash that the policy have accumulated, or you can take the cash in the word form of a loan and still maintain your policy. The cash values of your policy collect tax-deferred, which intends that while the cash is accumulating interest you pay no taxes on the interest. Whenever you take out the cash you pay the taxes then. You also borrow on a tax free basis.


As most whole life insurance policies are participating policies you earn dividends on your policy. Each twelvemonth the life insurance company declares a dividend, a part of which travels to policy proprietors who have a whole life policy. You can take your dividend in cash, the company will direct you a check each year, you can go forth the dividend to collect interest, or you can elect to purchase paid up improvers with your dividends. Paid up improvers are single insurance insurance premium policies of the same type, that is whole life insurance.

Waiver Of Premium Disability Rider

You can add a release of premium rider to your policy, which states, in a nutshell, that if you should go disabled, anytime after six calendar months of disability, the life insurance company will pay the insurance premiums for you. It makes not matter how long you are disabled, they will pay the insurance premiums even if it is for the remainder of your life.

Accidental Death Benefit

To your whole life policy, you can add an accidental death benefit rider which says that if you should decease in an accident the insurance company will pay your benefit twice the amount of life insurance you applied for.

There are a countless of other benefits to the whole life insurance policy chink the nexus below to get the details.


Post a Comment

<< Home