What is whole life insurance? Many people are unable to answer this question yet so many people purchase this type of life insurance without first understanding how it works and what it is.
What Is Whole Life Insurance
Whole Life insurance is a policy that will cover a person for the entire length of their life, hence the term whole life! However almost all policies will expire if the person reaches age 100.
To qualify for a whole life insurance policy most companies will make you undergo a medical exam and physical to make sure that you are not sick or have the potential to contract a fatal condition or disease in the very near future
The whole life insurance polices premium payments are allocated to two different parts of the policy. The first split of your payment goes to pay the actual policy payment and the other split is invested and will hopefully earn you a high return on your money.
Over a long period of time the potential for this money to compound into a fairly large sum of money is a real possibility and you have the ability to borrow against it if you so choose.
What Is Whole Life Insurance Advantages
Payment Stability- A major advantage of whole life insurance is that the premium payments generally remain consistent during the whole policy. So if you can open a whole life insurance policy when you are younger you will have low premiums for your entire life
Cash Value- The portion of your premiums that is deferred into a growth section of your policy is called the cash value and can be used for loan collateral or you can surrender your policy and take the cash to use how you see fit. Many people do this around their retirement in order to get a infusion of cash.
Learn more about Whole Life Insurance and how life insurance can benefit you and your loved ones by visiting http://www.lifeinsurancestuff.com
