Until this day, there are still some people who want to get some answers about the question ‘what is whole life insurance?’ From having the terms whole life, you can rest assured that this is the kind of insurance that will be able to cover all the things that get to happen in your entire life. What is great about whole life insurance than term life insurance will have to be the fact that the amount of your premium will just be the same all throughout your lifetime and never in increasing amounts. There are still a lot of thins that you ought to know about whole life insurance, and this article will be your beginner’s guide to whole life insurance and more.
In terms of the length of time that one must pay for their whole life insurance, most of such policy will be computed to mature at 100 years of age. This is the age wherein the premium should stop and the cash value should be equal the face value of the policy. The insured must be getting this cash value then. How long the maturity will be is often not being said in this kind of policy. The insured’s age will be the basis of the calculation of the premiums, that is at the start of getting the policy and until the age of 85. Due to the fact that females have longer life spans, you can expect that their premiums are bigger in calculation than those of their male counterparts. When the premium amount has been identified by the insurance company, this will be made a fixed term amount that will be paid by the insured in quarterly yearly, yearly, half yearly, or monthly.
You can rest assured to get a guaranteed death benefit when you constantly pay your premiums. There are different causes of death that the insured might face but once they do because of an accident, old age, young age, or illness, the beneficiary will be provided a huge amount of money accordingly by the whole life insurance provider. The sum of money the beneficiary receives usually depends on the amount of money the person wants to be insured. Take, for example, if the amount of coverage the insured will be getting is a $100 thousand, when the insured will die, his or her beneficiary will be getting this exact amount after.
For the insured of the whole life insurance, it is cash value that he or she will be getting. This cash value can be borrowed some money from. In case the insured is not able to pay for his or her premiums, the cash value will be taking over and be the one to pay for the premiums automatically for the meantime to avoid lapses. If, however, the cash value has been used already by the insured, he or she must not get any lapses in paying for his or her premiums.