Whole Life Insurance Explanation

Outline Of How Whole Life Insurance Works

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Whole life insurance explanation. Ever given any thought to whole life insurance? Most people know what term life insurance is all about but how about whole life? Can it do anything for you? Here is a brief whole life insurance explanation.

• What Is Whole Life Insurance?

  Whole life insurance covers you until age 100. It costs a lot more than term insurance, why? There are 3 things which determines how much you pay for life insurance, your age, your health and your occupation. As you get older the more life insurance costs.

  Look at it this way, because whole life lasts much longer than term it costs more.

• Cash Value And Dividends

  Let us suppose you have your policy for 5 years you will likely have a cash value in your policy. In other words if you surrendered your policy at that point you would get a return of some of your premiums. Cash values are in fact a return of premiums.

  In addition if your carrier are successful in keeping down expenses and are successful with investments you may get a dividend on top of your cash value. Dividends, however, are not guaranteed. There are companies that have paid dividends for decades but no life insurance company can guarantee that.

• Best Whole Life Policy

  If you like the idea the best whole life policy to buy is either the non par whole life policy or a modified policy, which is a mixture of whole life and term at the outset. Over time the term portion can be replaced by paid up additions if you buy from an efficiently run company.

  The premiums for these policies are usually much lower than those of the regular whole life policy.

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