Whole life insurance, also known as whole of life insurance, is an insurance policy that is guaranteed to stay in effect for the insured’s lifetime, regardless of the amount of insurance premiums paid or the date of the policy’s maturity. This type of insurance can provide protection against unexpected medical bills and expenses, but does not pay out to a beneficiary until one of the insured’s beneficiaries passes away.
Some people choose to purchase these policies because they provide greater financial protection than standard insurance policies. Whole Life Insurance policies pay out to two different beneficiaries, depending on how much the premiums have been paid. For example, the insured pays the premium for a specific period of time, usually a year, and the insurance company pays the premium for that period of time. The difference between the premium payments is then divided between the insurance company and the two different beneficiaries.
Canceling a Policy
If the insured does not need insurance coverage for his entire life, the policy may be canceled at any time. Most whole life policies will allow the insured to borrow money from them to pay off the premiums. However, if the policy does not include a borrowing provision, the policy will not be canceled until the insured is no longer covered under it.
Whole life policies require that the insured, as well as his beneficiaries, pay a certain amount of tax on the premium each year. The tax is based on how much insurance was paid and the age of the insured and can be reduced by paying more premiums.
Insurance Agency you can trust
There are a number of insurance companies that sell whole life policies, but there are no government-established regulations requiring insurers to offer policies with these terms. As a result, many insurance agents sell policies to people who do not meet any criteria for purchasing them. In order to protect their clients, some insurance companies will not sell plans that are not guaranteed for lifetime coverage but provide no benefits to the insured after he or she is deceased. When you choose Reliable Financial, you never have to doubt if we are giving you the best possible deal on your life insurance because we wouldn’t provide you with anything less.
Insurance Policy Types
Although there are many different types of policies available for people to buy, a whole life policy is one of the most affordable policies to buy. This type of insurance offers the same financial security to anyone, even individuals who are just starting out in the business world. It is important to consider the fact that if the policy is purchased too early in life, a person may not have the money available to cover unexpected medical bills and expenses, but may have only a few years or even months before he or she reaches the age of retirement or is required to begin paying a large sum of taxes on the premium payments.
Call, email, or schedule a telephone appointment with us today for a comprehensive quote.