How to use Whole life insurance in a sentence
Choosing a whole life insurance policy will provide the insured with coverage for his or her lifetime.
When a person takes out a whole life insurance policy, also referred to as permanent life insurance, the coverage stays in effect for the insured's entire life and in most instances, the premium does not change.
Traditional whole life insurance guarantees a minimum rate of return on the cash value of the insurance policy.
Interest sensitive whole life insurance provides a variable rate of interest on the cash value portion of the insurance policy.
Single premium whole life insurance is purchased in one lump sum payment.Advertisement
Before deciding between whole life insurance and term life insurance, you should learn as much as possible about each option.
Term life insurance is different than whole life insurance because it provides coverage for a very specific amount of time.
In addition to the length of coverage, a term policy differs from whole life insurance because there are no investments that can be made.
For example, compare term life insurance policies with other term life insurance policies and whole life insurance policies with other whole life insurance policies.
A permanent life insurance policy, more often known as a whole life insurance policy, is guaranteed to pay your beneficiaries a life insurance settlement in the event of your death.Advertisement
One way to save money on monthly premiums is to purchase term life insurance instead of whole life insurance.
The Grow-Up Plan is a whole life insurance plan that covers small children between the ages of 14 days and 12 years old.
The life insurance policies offered to young adults between the ages of 13 and 17 are also whole life insurance policies.
In the case of endowment and whole life insurance policies, the beneficiary receives a death benefit if the insured is injured and dies.
A whole life insurance single payment policy is a plan in which one relatively large premium is due when the policy is issued.Advertisement
For people who want to buy a single payment whole life insurance plan, but can't afford the one-time payment, some insurance companies offer installment plans.
As you consider purchasing a single payment whole life insurance policy, it's a good idea to consult with a tax or financial advisor.
Term life insurance is usually a less expensive option than a whole life insurance policy.
A whole life insurance policy is not restricted to a set period of time.
Whether term life or whole life insurance is right for you depends on several factors.Advertisement
Understanding this disagreement can help you to understand the definition of whole life insurance.
This means that when you purchase a whole life insurance policy you are covered for your "whole life," meaning that there's no term when the policy ends.
A whole life insurance policy builds up what's called "cash value" over time from the interest that your premiums earn.
Many insurance companies offer additional or fewer varieties of whole life insurance products.
This assumes, however, that you can afford the more expensive early premiums associated with a whole life insurance policy.Advertisement
Before buying a life insurance policy, conduct thorough whole life insurance comparisons to determine if the policy is right for you.
Once you have decided that whole life is best for you, you need to conduct whole life insurance comparisons to find out which particular policy is the best choice.
You get paid through periodic checks, similar to how payouts work with whole life insurance.
You may have received a sales pitch from an insurance salesperson with a bewilderingly high premium for a whole life policy, and you want that whole life insurance explained.
A whole life insurance policy has a higher premium for the same dollar amount initially, but can be the least expensive form of life insurance over the course of a lifetime.