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  • September 13, 2018
  • A Beginner’s Guide to Whole Life Insurance

    Until this day, there are still some people who want to get some answers about the question ‘what is whole life insurance?’ You may say that this kind of insurance is permanent owing to the fact that it covers your whole life, as the name of the insurance implies, which is true. What is great about whole life insurance than term life insurance will have to be the fact that the amount of your premium will just be the same all throughout your lifetime and never in increasing amounts. There are still a lot of thins that you ought to know about whole life insurance, and this article will be your beginner’s guide to whole life insurance and more.

    The maturity of some whole life insurance plans should be able to reach as high as a hundred years old. It is during this age that the face value of the policy will now be equal to its cash value, and the age were premiums must end. The insured must be getting this cash value then. How long the maturity will be is often not being said in this kind of policy. In the calculation of the premiums of the one who is insured, the start of the computation is usually the age in which the insured gets the policy ending in the age of 85. Some whole life insurance providers also take into account their clients being male or female because females tend to live longer in general compared to males. This computation will help to determine the fixed premium amount that the policy holder must be able to pay be it on a monthly, half yearly, quarter yearly, or yearly basis.

    So long as you will be regularly paying your premiums, you can rest assured that you will get a guaranteed death benefit. There are different causes of death that the insured might face but once they do because of an accident, old age, young age, or illness, the beneficiary will be provided a huge amount of money accordingly by the whole life insurance provider. The sum of money the beneficiary receives usually depends on the amount of money the person wants to be insured. For instance, if the policy holder decides to get a hundred thousand worth of whole life insurance coverage, when he or she dies, the beneficiary will be getting the entire amount.

    With whole life insurance, the buyer will be given some cash value. This cash value can be borrowed some money from. If, for instance, the insured will not be paying for some time his or her insurance, this cash value will be the one to pay for the premiums so lapses are avoided. But then, premiums must be continually paid by the policy holder when his or her cash value has already been depleted by him or her to avoid suffering from policy lapses.

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