| Whole Life Insurance PolicyFree Online Whole Life Insurance Policy Rate Quotes |
Buying A Whole Life Insurance PolicyWhen you buy whole life insurance, you want a policy that fits your needs at a reasonable cost. Your first step is to determine how much life insurance you need. You must choose the type of whole life insurance policy that meets your coverage goals and fits into your overall financial plan. Once you have completed these steps, you will be able to move ahead and contact several life insurance companies (through an agent or broker) to shop for the right type of policy for you.
Types of Whole Life Insurance PoliciesJoint whole lifeProvides basic whole life benefits and features, but two lives are insured under the same policy. When one person dies, the benefit is paid to the survivor, who then has an option to purchase an individual whole life policy without having to prove insurability.Last survivor whole lifeA type of joint whole life, designed mainly for married couples. Federal estate taxes are not collected on property left to a spouse, but when the surviving spouse dies, estate taxes are due and can be very high. A last survivor policy pays a benefit only after both spouses have died, providing funds for estate taxes.Universal lifeLets you choose your policy's face amount and premium, and change these factors while the policy is in effect. Your choices must fall within the company's specified minimum and maximum amounts. These guidelines are set to meet life insurance regulations and maintain healthy relationships between premium, face amount, benefit, and cash value.Adjustable lifeAllows you to vary your coverage as your insurance needs change. You normally choose the face amount you need and the premium you want to pay, and the company calculates a plan that provides coverage for your request. The result could be any plan from a term life policy with a short period to a limited-payment whole life policy. You can also choose the type of plan and face value you want, leaving it to the company to calculate the premium rate needed.Indeterminate premium lifeSpecifies two premium rates — a guaranteed maximum, and a lower rate you actually pay. The lower premium is level for a set period of time. Then the company establishes a new rate that may be higher or lower than the initial premium. But your premium can never be more than the guaranteed maximum.Interest sensitive whole lifeIndeterminate premium life taken a step further... cash value can increase beyond the stated guarantee if economic conditions warrant. You decide whether you want favorable changes to result in lower premiums or higher cash value. Also called current assumption whole life.Variable lifeHas benefits and features similar to traditional whole life, but face amount and cash value depend on investment performance of a special fund. Reserves are placed in investment accounts that are separate from the company's general account. Values of these separate accounts rise or fall based on returns from the separate investments. Face amounts and cash values depend on how investments perform. Most policies guarantee the face amount will not fall below a set minimum. Minimum cash value is rarely guaranteed.Variable universal lifeCombines rate and benefit flexibility of universal life with investment and risk factors of variable life. Like variable life, this product is considered a security. It can only be sold by agents who have passed the National Association of Securities Dealers (NASD) exam. |
Choose a "Whole Life Insurance Policy" instead of a Term policyWHOLE LIFE insurance coverage is a lot more expensive than term-life, but it is worth it.Under a whole-life policy, your loved ones not only get a payout on your death, but the policy also accumulates cash value over time that the policyholder can redeem or borrow against. Term-life policies do not rack up a cash value, but that means their premiums are much lower. Term plans have their place but people should realise the cover usually expires when the policyholder reaches 60 to 65. So they are mostly useful for temporary, short-term needs: for example, if you are going to be posted overseas for a period of time. Some financial planners advocate buying term plans and investing the difference in order to accumulate cash value that way. That approach is suspect. In reality, most people don't invest the difference, they spend it. Whole-life plans, on the other hand, make sure you have some insurance in place when you are older and past the period when companies give term insurance.  Whole Life Insurance Policy FYIA Whole Life Insurance policy (also known as straight life, ordinary life and traditional permanent insurance) is an insurance policy which has guaranteed premiums and guaranteed death benefits payable to a beneficiary at the time of the death of the insured, and a minimum interest rate which will be credited to the funds accumulated in the policy.When buying a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years to make it a better investment. A Whole Life Insurance policy makes a great savings and retirement product. Whole Life Insurance Policy Quotes For: |
