There are basically two types of life insurance available. These are whole life and term life insurance. Term life insurance policies are only cover your life while there are other benefits in owning whole life insurance.
Whole life insurance policies will cover you for your whole life or until you reach the age of 100. Of course you have to pay all of your premiums in a timely manner for this to apply. Another advantage to whole life insurance is that it builds up cash values while term life insurance does not. It is most common for the cash value to start building once you have paid your premiums for one year. Another advantage to whole life insurance is that the premium is fixed at the same rate for the life of the policy. With term life insurance you will face higher premiums when you renew your policy because of increasing age. It also required that you pay your premiums as required by your term insurance policy.
First of its highly positive trade-off is the accumulation of cash values, which could be a good way of investing money on a tax-free way. In addition, the policy holder gets a permanent lifetime insurance protection. Most importantly, this kind of insurance policy may be surrendered at any time with great accumulated cash values. This kind of insurance is suitable for long-range investments.
Accumulated cash values of whole life insurance could sometimes be greater than the guaranteed amount because the insurance companies could invest these premiums in a more profitable venture, thereby returning to the policy holder his share of the monetary investment.
Another advantage to owning whole life insurance is that you have the ability to take out a loan based on your cash value at the time. Whole life insurance is able to compete well with other fixed income investments according to supporters of this type of insurance.
The benefits of the whole life insurance policy will never change and provides you a security of a lifetime. Due to the interest earned in this policy, the policy holders will also get dividends from their cash value. One good option of this insurance is that policy holders can borrow money with lower interest rates due to the annual adjustment of its interest rates, it is not adjusted monthly.
Before you make the decision to purchase whole life insurance, you should go over your budget and be certain that you can afford it. This will be a long-term investment so careful thought needs to be put into what you can afford to pay for it. If whole life insurance is out of your budget?s range, you should still buy lower priced term insurance at a young age and perhaps add whole life coverage when you can better afford it. You also need to keep in mind that once you have obligated to a whole life insurance policy, the rate will stay the same for the rest of your life. These policies cannot be reduced to a lesser value once you have committed to purchase them but they are very good investments for those who can afford them. - 29971
Whole life insurance policies will cover you for your whole life or until you reach the age of 100. Of course you have to pay all of your premiums in a timely manner for this to apply. Another advantage to whole life insurance is that it builds up cash values while term life insurance does not. It is most common for the cash value to start building once you have paid your premiums for one year. Another advantage to whole life insurance is that the premium is fixed at the same rate for the life of the policy. With term life insurance you will face higher premiums when you renew your policy because of increasing age. It also required that you pay your premiums as required by your term insurance policy.
First of its highly positive trade-off is the accumulation of cash values, which could be a good way of investing money on a tax-free way. In addition, the policy holder gets a permanent lifetime insurance protection. Most importantly, this kind of insurance policy may be surrendered at any time with great accumulated cash values. This kind of insurance is suitable for long-range investments.
Accumulated cash values of whole life insurance could sometimes be greater than the guaranteed amount because the insurance companies could invest these premiums in a more profitable venture, thereby returning to the policy holder his share of the monetary investment.
Another advantage to owning whole life insurance is that you have the ability to take out a loan based on your cash value at the time. Whole life insurance is able to compete well with other fixed income investments according to supporters of this type of insurance.
The benefits of the whole life insurance policy will never change and provides you a security of a lifetime. Due to the interest earned in this policy, the policy holders will also get dividends from their cash value. One good option of this insurance is that policy holders can borrow money with lower interest rates due to the annual adjustment of its interest rates, it is not adjusted monthly.
Before you make the decision to purchase whole life insurance, you should go over your budget and be certain that you can afford it. This will be a long-term investment so careful thought needs to be put into what you can afford to pay for it. If whole life insurance is out of your budget?s range, you should still buy lower priced term insurance at a young age and perhaps add whole life coverage when you can better afford it. You also need to keep in mind that once you have obligated to a whole life insurance policy, the rate will stay the same for the rest of your life. These policies cannot be reduced to a lesser value once you have committed to purchase them but they are very good investments for those who can afford them. - 29971
About the Author:
Graham McKenzie is the content syndication coordinator a leading South African Life Insurance and Life Cover portal.
