whole life insurance
Whole life insurance is a type of insurance that is good for a person’s whole life. It is effective from date purchased to date of individual’s death. The policy of whole life insurance matures when an individual turns the age of 100. Basically this means if the payments have been paid up and on time then at age 100 the policy is therefore completely paid with no payments remaining. The purpose for buying into a whole life or any insurance policy is to make sure that the loved ones left behind after your death are taken care of. There are several basic types of whole life insurance policies.
Straight whole life is like it says straight. This type of policy has a set level of payments that are paid each year. The payments are paid up annually until the policyholder turns the age of 100 or dies.
Limited pay whole life policy is where the payments stay the same. However, the payment may be marked by a specific birthday where payments no longer have to be paid. Sometimes instead of basing it on the policyholders specific birth date a certain date other than this is determined.
Single premium whole life policy is where one payment is made making the policy paid in full. This type of payment would be made at the initial setup of the policy. The policy will then automatically have cash value you may borrow from if needed. However, there are certain rules and regulations a policy owner must follow with this type of policy.
Modified whole life policy is a policy where payment starts off low and then increases as time goes on. This type of policy is designed for the younger generation who may not be as financially fit as they will become in later years with time and experience. The policy payments in the end would be like having a straight whole life insurance policy.
Graded premium life is an insurance policy that has payments low in the beginning and then they gradually increase over time. This policy would eventually equal out the same as a straight whole life insurance policy.