Articles From Experts
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Express Newsline Articles From Experts |
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Whole life insurance: the term says it all, it covers you for your entire life.Your death benefit and premium in most cases will remain the same. Whole life insurance builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it. Choices within whole life insurance: the most common choices include traditional, interest-sensitive, and single-premium whole life. Traditional gives you a guaranteed minimum rate of return on your cash value portion. Interest-sensitive gives a variable rate on your cash value portion, similar to an adjustable rate mortgage. With interest-sensitive whole life you can have more flexibility with your policy such as increasing your death benefit without raising your premiums depending on the economy and the rate of return on your cash value portion. Single-premium is for someone who has a large sum of money and would like to purchase a policy up front. Like other whole life options, single-premium whole life accrues cash value and has the same tax shelter on returns. The benefits of choosing it over other types of life insurance Your premium will remain constant during the time you are covered unless you choose otherwise. Unless you make a change to your policy, you have lifelong coverage with no future medical exams. Whole life is also a good choice because of the tax savings. Should one purchase whole life policy for an investment?
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