There are many different types of insurance and researching whole life insurance rates can help one to make an informed decision on which type to buy. With Term Life and Whole Life as the two most popular types of life insurance available, some information on the differences can be valuable.
Whole Life is insurance that pays a predetermined amount to the beneficiary upon death. There are different options available for premium amounts and different methods to determine payment structures. The first of these is a policy which accrues a cash value. With this type of policy, one can borrow against the proceeds after a certain amount of premiums have been paid. This money must be paid back, but if it is not, then the amount of the proceeds upon death is lessened. There are also tax benefits to this type of borrowing.
The standard type is premiums that stay the same throughout the life of the policy, however there are exceptions to that. One of these is a lump sum premium. This is a situation in which the insured pays a large lump sum at the beginning of the policy and the premium payments are less over the years. The whole life insurance rates and the amount of the lump sum payment and the premium amounts are clearly delineated at the beginning of the policy. The purchaser decides how much lump sum payment to make based on personal factors at the time.
A whole life policy can never be canceled as long as the insured makes the premium payments as required. No health issue or age issue can lessen the benefits paid upon the insured’s death. This guarantee can become very valuable over a lifetime. Another benefit of a whole life insurance policy is that the purchaser can purchase a relatively cheap rider that will double the benefits paid upon death if said death is caused by an accident.
It is a very practical idea to do comparison shopping. Whole Life insurance rates vary greatly by company and by benefit provision. Doing the research and determining the best fit for each unique situation can best be discussed and decided with a knowledgeable insurance professional.
Whole Life is insurance that pays a predetermined amount to the beneficiary upon death. There are different options available for premium amounts and different methods to determine payment structures. The first of these is a policy which accrues a cash value. With this type of policy, one can borrow against the proceeds after a certain amount of premiums have been paid. This money must be paid back, but if it is not, then the amount of the proceeds upon death is lessened. There are also tax benefits to this type of borrowing.
The standard type is premiums that stay the same throughout the life of the policy, however there are exceptions to that. One of these is a lump sum premium. This is a situation in which the insured pays a large lump sum at the beginning of the policy and the premium payments are less over the years. The whole life insurance rates and the amount of the lump sum payment and the premium amounts are clearly delineated at the beginning of the policy. The purchaser decides how much lump sum payment to make based on personal factors at the time.
A whole life policy can never be canceled as long as the insured makes the premium payments as required. No health issue or age issue can lessen the benefits paid upon the insured’s death. This guarantee can become very valuable over a lifetime. Another benefit of a whole life insurance policy is that the purchaser can purchase a relatively cheap rider that will double the benefits paid upon death if said death is caused by an accident.
It is a very practical idea to do comparison shopping. Whole Life insurance rates vary greatly by company and by benefit provision. Doing the research and determining the best fit for each unique situation can best be discussed and decided with a knowledgeable insurance professional.
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