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What is Whole Life Insurance? The main difference between whole life insurance and term life insurance is that whole life insurance will last your whole lifetime. As opposed term life which will last for specific periods of time Another factor is that there is also a provision for death benefit as well as the premiums staying constant. The cash value on whole life insurance is built as returns on a portion of the insurance premium that is invested by the insurance company. The nice part is the cash value will be tax deferred till the time you take out the money, and another nice part of whole life insurance is it can also be a means of obtaining loans. There are a couple of ways that the benefit can be paid out. They are listed below. 1. Pays a lump sum on death
2. Will also pay on early diagnosis of major illness These two items above will be paid provided that the whole life insurance premium has been made. This is what the whole life insurance policy is all about. The two different payment types listed above can be paid out in a couple of different ways. One way, can be a fix sum, the other way of being paid out can be based on an investment performance on the amount of money that is remaining after mortality and once other expenses have been subtracted. How is Whole Life Insurance Premium Paid What is whole life insurance when it comes to paying the premium. There are several different ways that this can be accomplished. One of the ways allows the policy holder to choose from a single and fixed periodic payments. Another way that the premium can be based is on periodic payment and is subject to review, depending upon the performance and changes in the cost of mortality. There is also another option that allows you to choose a flexible range of payouts that will maximize over a given period of time, such as 15 years. What is whole life insurance after the 15 years have elapsed. The policy holder is then able to continue with the increased premium, or they may decide to reduce the coverage. What whole life insurance is can also vary with different types of whole life policies. Among the different types of policies are; non-participating, indeterminant premium, participating, economic as well as a single premium and limiting pay. So let me give you the whole Life Insurance explanation and some whole life insurance tips. In reference to what is whole life insurance, there are certain things that need to be met. One of the items that needs to be met is the owner pay premiums for the entire duration of the policy. They can also opt to let the policy be "paid up", when this happens it will require no further payments after say a period of five years. Or it can either be paid in one lump sum. There is another advantage to what is whole life insurance as it pertains to the increase in cash value of the policy. And this increase in cash value will increase even if the performance of the company is not too good. One thing that you need to do is answer the question of whether not you want to purchase a whole Life Insurance policy. With that being in mind you need to know what a whole life insurance policy is about, including the rate of return on such a policy. You must understand that the rate of return is quite low when you compare it to other investments. If you end up choosing whole life insurance as your insurance of choice you have to keep in mind that it is a good investment. The reason why it is a good investment is because it provides protection which is more important than that rate of return. Once you have studied what whole life insurance is, you're going to be aware of the benefits of such a policy. One of the benefits is the premium money that goes in to create a cash value. This can then pay off the entire policy over a short period of time. Another nice thing and benefit of whole life insurance policy is that the premium remains constant for the time that you are covered. Now if you have no changes in your policy, you will not be required to have any further medical examinations. You have to also investigate the tax incentives for choosing a whole life insurance policy. As you can see once you have a whole life insurance policy explained to you, you can see that there are many benefits to having such a policy. Having the whole life insurance premiums remain constant is a big benefit. So what is whole life insurance, it is an investment in your future to protect you and your family. For more information on this topic and other insurance related topics visit: Life Insurance Rate Quotes
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