A whole life insurance explanation should be required reading
for anyone about to purchase life insurance. Whole life, in my
humble opinion, has in recent years got a bad rap. People tend
to buy 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 worth looking at.
Guaranteed Death Benefit
The death benefit of a whole life insurance policy is guaranteed
to stay level for the duration of the policy. If you think about
it, that means a lifetime. That type of guarantee cannot be
sneezed at. The premiums of your whole life insurance policy is
also guaranteed never to increase. This is also a very important
feature. The policy can never be cancelled by the insurance
company.
Cash Value Accumulation
A whole life insurance policy has cash values, that cash
available to you,if you should need it, at any time. You can
surrender your policy and get the cash that the policy has
accumulated, or you can take the cash in the form of a loan and
still keep your policy. The cash values of your policy
accumulate tax-deferred, which means 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.
Dividends
As most whole life insurance policies are participating policies
you earn dividends on your policy. Each year the life insurance
company declares a dividend, a portion of which goes to policy
owners who own a whole life policy. You can take your dividend
in cash, the company will send you a check each year, you can
leave the dividend to accumulate interest, or you can elect to
purchase paid up additions with your dividends. Paid up
additions are single premium policies of the same type, that is
whole life insurance.
Waiver Of Premium Disability Rider
You can add a waiver of premium rider to your policy, which
states, in a nutshell, that if you should become disabled,
anytime after six months of disability, the life insurance
company will pay the premiums for you. It does not matter how
long you are disabled, they will pay the premiums even if it is
for the rest of your life.
Accidental Death Benefit
To your whole life policy, you can add an accidental death
benefit rider which states that if you should die in an accident
the insurance company will pay your benefit twice the amount of
life insurance you applied for.
There are a myriad of other benefits to the whole life insurance
policy click the link below to get the details.
About the author:
For more than 40 years Donald has been known for his extensive
knowledge of the life insurance business. He has represented
some of the largest and best life insurance companies in the
United States as well as Canada. His advice is invaluable.
Donald's website is:
http://www.lifeinsurancehub.net
