| To begin with, you need to understand that | | | | have guaranteed cash values, the cash values |
| life insurance falls into two very broad | | | | of variable life insurance policies are not |
| categories: Whole and term. The basic | | | | guaranteed. You have the right to borrow |
| difference between term and whole life | | | | against the cash value of your whole life |
| insurance is this: A term policy is life | | | | insurance policy on a loan basis. Supporters |
| coverage only. | | | | of whole life insurance say the cash value of |
| | | | a life insurance policy should compete well |
| In whole life insurance policy, as long as | | | | with other fixed income investments. |
| one continues to pay the premiums, the policy | | | | |
| does not expire for a lifetime. As the term | | | | Unlike term life policies, whole life |
| applies, whole life insurance provides | | | | insurance provides a minimum guaranteed |
| coverage for the whole life or until the | | | | benefit at a premium that never changes. One |
| person reaches the age of 100. Whole life | | | | of the most valuable benefits of a |
| insurance policies build up a cash value | | | | participating whole life insurance policy is |
| (usually beginning after the first year). | | | | the opportunity to earn dividends. The |
| With whole life, you pay a fixed premium for | | | | insurance company based on the overall return |
| life instead of the increasing premiums found | | | | on its investments sets earnings on a whole |
| on renewable term life insurance policies. | | | | life policy. In addition, while the interest |
| In addition, whole life insurance has a cash | | | | paid on universal life insurance is often |
| value feature that is guaranteed. In term | | | | adjusted monthly, interest on a whole life |
| and whole-life, the full premium must be paid | | | | policy is adjusted annually. Like many |
| to keep the insurance. | | | | insurance products, whole life insurance has |
| | | | many policy options. |
| With level premiums and the accumulation of | | | | |
| cash values, whole life insurance is a good | | | | Make sure you can budget for whole life |
| choice for long-range goals. Besides | | | | insurance for the long term and do not buy |
| permanent lifetime insurance protection, | | | | whole life insurance unless you can afford |
| Whole Life Insurance features a savings | | | | it. You should buy all the coverage you need |
| element that allows you to build cash value | | | | now while you are younger, and if you cannot |
| on a tax-deferred basis. The policyholder | | | | afford whole life insurance, at least get |
| can cancel or surrender the whole life | | | | Term. That is why whole life insurance |
| insurance policy at any time and receive the | | | | policies have the highest premiums it is |
| cash value. Some whole life insurance | | | | insurance for your whole life, no matter when |
| policies may generate cash values greater | | | | you pass on. The level premium and fixed |
| than the guaranteed amount, depending on | | | | death benefit make whole life insurance very |
| interest crediting rates and how the market | | | | attractive to some. Unlike some other types |
| performs. The cash values of whole life | | | | of permanent insurance, with whole life |
| insurance policies may be affected by a life | | | | insurance, you may not decrease your premium |
| insurance company's future performance. | | | | payments. |
| Unlike whole life insurance policies, which | | | | |