Whole Life Insurance: Premium for Life

Concerned about your family in times of great need? Perhaps a whole life insurance policy might ease your mind. It offers both protection for your family as well as a "savings account" which can be accessed in times of emergencies.

Alot of people are still concerned of their spouse and families’ situation after they’re gone. Savings in the bank or even their retirement funds are sometimes not adequate to cover the replacement earnings or expenses of their families after their passing.

For this trouble, there’s a potential solution - permanent insurance. A permanent insurance, also known as cash value insurance, is a form of insurance that lasts until the policy matures. A whole life insurance is a well-defined model as this insurance offers a permanent form of protection for a level premium with a cash value table, meaning to say that this insurance would require a level premium for life, and assures minimum cash value growth included in the policy.
How does it Work?

Essentially under this insurance policy, the insured party would pay a regular premium to the insurance company, in exchange for a guarantee of specified proceeds payable to his or her spouse or the closest relative upon his or her death.

There are by and large two types of whole life insurances; the participating and non-participating insurance. In a participating insurance policy, the insurer will divvy up the surplus profits, known as dividend with the policyholder. And this profit amount is contingent on the success of the company’s performance each year.

On the other hand, non participating insurance policy would refer to the policy in which all the values related to the policy such as death benefits and the premiums are determined at the time of the policy issue, for the life of the whole insurance contract, and can not be modified after that issuing.

Accessibility

This whole life insurance is nowadays a very popular trend, for there are so many companies offering this type of permanent insurance policy on the Internet. Just like a normal whole life insurance policy, an online policy would also cover the insured party at a fixed rate and a permanent premium.

Naturally it appears more costly than term insurance policies, but unlike term policies, which do not have cash, value account, this whole life insurance has a savings account for the insured party, which can be accessed at any necessary time if called for.

In short, this whole life insurance has a great benefit and is very valuable nowadays, particularly with high living costs. This insurance essentially allows for a guaranteed death benefit and guaranteed cash values. It’s essential for anyone who has a family depending on them, and to at least cover their funeral costs, debts, and to replace the lost income.

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Kerry Ng is a successful Webmaster and publisher of The Insurance Blog. For more great helpful information about Insurance visit The Insurance Blog

By Kerry Ng Published: 10/26/2007

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Whole Life Insurance Explained

Settled in life and wish to keep this lifestyle all through your life? Starting out in life and wishing some coverage of the various risk you are sure to take? Whole Life Insurance Policies is one of the option available.

Enlarge Image Life Insurance
We live in a fast moving world. We are so busy with our day to day happenings, that we seldom find time to give to ourselves. Most of our
time in life is spent in creating a safe and secure future for ourselves and our family. It is ironical that we seldom find time to secure our family’s future in case we are caught in some fatal calamity.

Life insurance takes care of our family and loved one’s future in the wake of any untoward incidence. There are many types of life insurance policies today. One of the most commonly bought life insurance polices are the Whole Life Insurance Policies.

Description of Whole Life Insurance

A whole life insurance policy is a policy that generally pays a lump sum in the event of the death of the insured to the dependents of the insured. In some cases, the earlier diagnosis of a critical illness also results in the said payment. The only requirement for this payment is that the policy is kept in force with the required payments being made in time. Whole life insurance policies are sometimes called straight life insurance policies or permanent life policies.

 

Whole Life Insurance policies, like every policy depends wholly on the premia. There are different ways in which the a insured can pay the premia. Some whole life insurance policies have a single premium, or a fixed periodic premium, or sometimes it can be paying a lumpsum amounts in flexible periods.

Apart from covering the risk of life, whole life insurance policies are also sane and safe investments. If the insured decides to cancel the policy mid way, they will be paid in full whatever premia they have paid till that day. Therefore, whole life insurance is a way to make some tax free savings.

Why Whole Life Insurance?

Whole Life Insurance policies are different from Term Life Insurance policies. Term Life Insurance policies are for a set time, and the insured is paid a lumpsum amount after the end of the term of the policy or if the insured expires during the term of the policy.Depending on the type of policy, the insured may get certain bonuses.

However, under the Whole Life Insurance policy, either the dependents get a lumpsum amount in the case of death of the insuree, or at the diagnosis of a critical disease. This system is actually more preferable, because a set amount of money is guaranteed even after the death of the insured.

The insured cannot claim in the case of death after the term of the life insurance policy, nor can the policy be en cashed. Simply put, a term life insurance policy covers the risk of death only till a set period of time. A Whole Life Insurance policy covers the risk of death at any given time.

There are various insurance companies offering whole life insurance
policies. One should do careful research on the various policies and their features, benefits and returns. One should also think about his or her financial capabilities before opting for any higher-end insurance policy. One buys insurance for coverage of risk at a economical and affordable rate. If you have to work harder or more to cover your insurance policy, you have lost it.

One can find out about the various policies either online or by calling
up the company itself. Though insurance is a non-tangible commodity, it is extremely necessary, and it is never too early or too late to opt
for an economic and affordable whole life insurance policy.

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By Roy D’Silva Published: 3/24/2007

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Posted under Whole Life Isurance