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