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Whole Life Insurance
Whole life insurance policies were the insurance industry's answer to the backlash they were receiving from the original term life policies that they offered. Whole life insurance offers benefits to both the insured party and the insurance company. While term life policies never offered a cash value reward for the monthly paid premiums of term life policies, whole life insurance builds cash value every month and builds interest towards the policy's maturity date (at 95 or 100), upon which the insured party may borrow against in an emergency. In turn, as the premium payments are made, the risk of the policy reduces, lowering the cost of insurance.Types of Whole Life Insurance
There are several types of whole life insurance policies available to consumers. While there is no right or wrong when it comes to choosing a whole life insurance policy, understanding what each one offers will help you make a more informed decision.
- Non-Participating - With non-participating whole life policies, every term and condition of the policy is determined at the beginning of the policy's life. If claims against the policy turn out to be less than what was estimated, the insurance company will keep the difference. If the claims against the policy are greater than the estimate, however, the insurance company will be required to make up the difference.
- Participating - Through participating whole life insurance companies, the policy holder receives dividends, or refunds based on the insurance companies performance. The better the insurance company does, the more the insured party will receive.
- Indeterminate Premium - The indeterminate premium whole life insurance policy is very similar to a non-participating policy except the premium may vary each year without exceeding a maximum set amount.
- Economic - Economic whole life insurance is similar to participating whole life insurance except the dividends the insured receives are used to purchase additional term life policies.
- Limited Pay - Limited pay whole life insurance is also similar to participating life insurance except the insured party is only required to make premium payments for a set number of years. Once the premium payments have been met, the life insurance
No matter what kind of whole life insurance policy you are interested in purchasing, InsuranceQuote.com can help you find the lowest prices available on whole life insurance from reputable insurance companies from around the nation. Whether you need life, health, auto or business insurance, let InsuranceQuote.com do the work for you.