Whole Life Insurance
Whole life insurance, also
known as “cash-value” insurance is a basic and consistent type of permanent
life insurance which remains in effect your entire life at a level premium. This
life insurance is a good choice got you if you do not expect your life
insurance needs to diminish over time. A portion of your premium goes into a
reserve fund called ‘cash value’ that builds up over the years your policy is
in affect. Your reserve fund is tax-deferred and you can borrow against it, until
you withdraw it.
The premiums must generally remain
constant over the life of the policy and must be paid periodically according to
the amount indicated in the policy. You may also have the option of a single
premium ----- paying all of the premiums at once with a single lump sum. Your
cash values will grow to equal the amount of the death benefit when you turn to
age 100.
Although, whole life insurance
is very expensive, and if you're on a limited budget, you may not be able to
afford all the insurance coverage you actually need. But the plus point is that
the death benefit is guaranteed as long as premiums are met. Also death benefit
will never decrease if you don't borrow against it.
Whole life insurance
policy's returns will fluctuate with the markets and will usually follow
returns available from other investments like equity mutual funds. However, if
you decide to quit your policy, your cash value can be paid in cash or paid-up
insurance.
Whole life insurance is most
suitable for you, if you want to:
- use it as a tax and estate planning vehicle,
- accumulate cash value for a child's education or retirement,
- pay final expenses,
- provide money for a favorite charity,
- fund a business buy/sell agreement,
- provide key person protection.
Click here for detail
0 comments:
Post a Comment