Whole Life Insurance/Whole Life Assurance
Whole life insurance is also known as Whole life assurance. As the name implies, this type of policy covers the policy holder for as long as he or she may live. The whole life assurance is said to be a great long term goal as it has level premiums and accumulates cash value. The cash reserve can provide the policy holder with future, temporary needs or unforseen emergencies.
Whole life insurance/Whole life assurance was also formerly known as whole term life insurance.
Types of whole life insurance:
1. Non-Participating
Non-participating whole life insurance is where all the values relating to the policy are determined by the policy issue. This cannot be altered after issue of the policy.
2. Participating
Participating whole life insurance is also known as the with-profits policy. This policy shares the excess profits with the policy holder. These profits are non taxable.
3. Indeterminate Premiums
This type of whole life insurance is very similar to non-participating whole life insurance. The only difference here is that the premium will never exceed the maximum premium as stated in the policy.
4. Economic
The Economic whole life insurance is a combination of participating and whole term life insurance. This policy is wherein a part of the profits is used to buy additional whole life term insurance. This policy can also provide a higher death benefit.
5. Limited
The limited whole life insurance policy is similar to the participating whole life insurance policy. This is where the policy holder pays annual premiums only for a certain amount of years instead of paying annual premiums for life. This policy continues for the life of the policy holder, and generally costs more.
6. Single Premiums
This is a type of Limited whole life insurance. The policy holder pays a single large up front payment. This payment is seen as the pay period.
7. Interest Sensitive
Interest sensitive whole life insurance is a rather new type of insurance policy. It’s also referred to as the current assumption whole life insurance. This policy is a combination of whole life insurance and universal life insurance.
How does whole life insurance work?
The whole life insurance policy is a policy that usually pays a set amount of money to the policy holder’s dependants, in the event of death. This policy also pays out if the policy holder gets diagnosed with a critical illness or disease. This amount is guaranteed. Whole life insurance covers the risk of death at any given time.
You can find different online whole life insurance providers. Make sure you examine all whole life insurance policies and rates to find a whole life assuracne policy to best suit your needs.
What is whole life insurance?