There are not a lot of people who are well aware of the real meaning of whole life insurance. With the name in itself, you can expect that this kind of life insurance will be able to cover your entire lifetime serving as your permanent plan. Compared with term life insurance where you will be paying for increasing premiums, with whole life insurance, you just need to pay a fixed amount of premium for your entire life. When you want to know more about this kind of life insurance, here you will find everything you need to know and more about it.
In terms of the length of time that one must pay for their whole life insurance, most of such policy will be computed to mature at 100 years of age. It is during this age that the face value of the policy will now be equal to its cash value, and the age were premiums must end. On the part of the insured, they are the ones who will be paid accordingly to the cash value. How long the maturity will be is often not being said in this kind of policy. The insured’s age will be the basis of the calculation of the premiums, that is at the start of getting the policy and until the age of 85. However, the premiums for females might be different from the males because the former has a longer life span. When the premium amount has been identified by the insurance company, this will be made a fixed term amount that will be paid by the insured in quarterly yearly, yearly, half yearly, or monthly.
You can rest assured to get a guaranteed death benefit when you constantly pay your premiums. There are different causes of death that the insured might face but once they do because of an accident, old age, young age, or illness, the beneficiary will be provided a huge amount of money accordingly by the whole life insurance provider. This particular amount of money that the beneficiary must be getting will depend a great deal on how much the insured has bought the whole life insurance accordingly. Take, for example, if the amount of coverage the insured will be getting is a $100 thousand, when the insured will die, his or her beneficiary will be getting this exact amount after.
With whole life insurance, the buyer will be given some cash value. You can expect to be borrowing money from this cash value. To avoid lapses in premium payments, such cash value can also be used to pay for them when the insured cannot yet pay for them. If, however, the cash value has been used already by the insured, he or she must not get any lapses in paying for his or her premiums.