Whole life insurance also known as “permanent” or “straight” life insurance is one of the most applied forms of insurance. This life insurance policy covers one’s entire life.
Whole life insurance also known as “permanent” or “straight” life insurance is one of the most applied forms of insurance. This life insurance policy covers one’s entire life. This is much in demand because of its ability to provide financial protection and accrue cash value and pay dividends to the insured. In other terms, you can say it as an investment, that you make to secure your future build up finance that helps you in your indigence.
Taking a whole life insurance policy leads to a number of benefits and advantages. Few of them are listed below.
1. The first advantage is The Death Benefit.
The whole life insurance policy guarantees you the death benefit that never decreases. Moreover no federal income taxes are charged upon death. And if you desire, death benefit can be taken as a monthly income instead of a lump sum.
2. Consistency of premium level.
Unlike term life insurance’s premiums, which increase at the time of renewal, the premium you pay in whole life insurance remains consistent. There’s no increase. However, use of dividends can minimize the premiums that you pay and contracted for.
3. “Cash value” is another beneficial feature of whole life insurance.
Unlike other life insurance policies, whole life insurance policy accumulates the useable cash reserves. This increase as one pays premiums and also accumulates tax deferred. And if you decide to surrender the policy, you receive your cash values.
4. Participation in whole life insurance policy earns you the dividends.
You are eligible to earn dividends if you own a participating whole life insurance policy. You receive this dividends in cash, which you can further use to either purchase a paid up additionsFree Articles, to minimize premiums or you can keep it within the policy to generate interest.
These advantages of whole life insurance policy are really worthwhile. If you are not confident you should consult an expert before taking up any policy.
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Wednesday, June 11, 2008
Life Insurance Explained
Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death...
Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death. There are many types of life insurances or assurance (in the UK) available today.
Basics: There are 4 parties in any life insurance policy. The policyholder is the one who is buying the policy, the insured is the one against whose death the policy is made, the insurer that is the insurance company and finally the beneficiary is the person who will get the proceedings of the life insurance policy. It is mandatory that the policyholder should have a legitimate reason for insuring a person’s life.
Types of Life Insurances:
1. Temporary Life insurance. This policy is also called term life insurance that has coverage for a fixed period of time. The policyholder needs to pay a premium for a fixed period of time for which the insurance company provides insurance coverage. This type of policy does not accumulate cash value.
2. Permanent Life Insurance. This type of policy provides coverage till the policy matures. A policy is said to mature when the person reaches a fixed age or dies. The policyholder needs to pay premium for the entire period. This type of policy accumulates a cash value. The policyholder can withdraw or borrow the money or surrender the policy to receive surrender value. There are 3 types of permanent life insurances.
2.1 Whole life insurance. This has a level premium and corresponding cash value. Upon death of the insuredArticle Submission, the beneficiary receives the death benefit only and not the cash value. The policy owner can borrow loans on the cash value.
2.2 Universal life insurance. This has a flexible premium and gives higher internal rate of return. The policy has a cash account depending upon the premium. The surrender value equals the cash account balance.
2.3 Variable Universal life insurance. This is similar to universal life insurance with cash account. However the money is invested by the insurance company in mutual funds for a greater return. Hence there is higher probability of increase of cash account but the risk of reduction in cash account is also present.
Betta Fish
Breeding Betta Fish
Discus Fish
Keeping Discus Fish Secret
Breeding Discus Fish Secret
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Japanese Tattoo Designs
Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death. There are many types of life insurances or assurance (in the UK) available today.
Basics: There are 4 parties in any life insurance policy. The policyholder is the one who is buying the policy, the insured is the one against whose death the policy is made, the insurer that is the insurance company and finally the beneficiary is the person who will get the proceedings of the life insurance policy. It is mandatory that the policyholder should have a legitimate reason for insuring a person’s life.
Types of Life Insurances:
1. Temporary Life insurance. This policy is also called term life insurance that has coverage for a fixed period of time. The policyholder needs to pay a premium for a fixed period of time for which the insurance company provides insurance coverage. This type of policy does not accumulate cash value.
2. Permanent Life Insurance. This type of policy provides coverage till the policy matures. A policy is said to mature when the person reaches a fixed age or dies. The policyholder needs to pay premium for the entire period. This type of policy accumulates a cash value. The policyholder can withdraw or borrow the money or surrender the policy to receive surrender value. There are 3 types of permanent life insurances.
2.1 Whole life insurance. This has a level premium and corresponding cash value. Upon death of the insuredArticle Submission, the beneficiary receives the death benefit only and not the cash value. The policy owner can borrow loans on the cash value.
2.2 Universal life insurance. This has a flexible premium and gives higher internal rate of return. The policy has a cash account depending upon the premium. The surrender value equals the cash account balance.
2.3 Variable Universal life insurance. This is similar to universal life insurance with cash account. However the money is invested by the insurance company in mutual funds for a greater return. Hence there is higher probability of increase of cash account but the risk of reduction in cash account is also present.
Betta Fish
Breeding Betta Fish
Discus Fish
Keeping Discus Fish Secret
Breeding Discus Fish Secret
Dragon Tattoo Designs
Tribal Tattoo Designs
Japanese Tattoo Designs
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