Whole life insurance is the type of insurance policy that provides coverage for your whole life and gives two benefits which are: Payment of death beneficiaries in the event of your death and money realized through the insurance policy can be borrowed or used as savings if you are still alive.
A whole life insurance gives you coverage for your entire stay or life here on earth. It is same thing as permanent life insurance. Whole life insurance policy gives you the opportunity to pay for premium which can be savings or death benefits. This insurance type is similar with universal insurance, which last for your whole life.
Types Of Whole life insurance
There are types of whole life insurance, they are
Traditional Permanent Life Insurance: Here the insurance company gives you a guaranteed minimum cash value for the policy you choose.
Interest Sensitive Whole Life Insurance:
Here you get a chance to enjoy Variable rate cash value portion as a policyholder. You can increase your death benefits in this premium without increasing the Premium. But this is fine with accordance to the economy situation and available rate of return on cash value portion.
Single Premium Permanent Life Insurance:
This policy is available only for persons that have huge amount of money. They can decide buy a policy up front. Single premium permanent life insurance allows you to increase your cash value portion with time pass and pay same tax rate as of before.
There are some benefits of Whole Life Insurance
- Your premium money goes towards your cash value.
- Premium remains constant unless you alter it.
- Permanent life insurance allows you to enjoy tax savings opportunity while you are alive.
- You might be wondering why whole life insurance costs more, it is not just an insurance coverage but also helps to save money. Some part of your premium goes to saving investment.
Please share this article with friends on Facebook..