The question ‘what is whole life insurance’ is always what you can expect people to be asking about if they are planning to get this kind of insurance or hear of it the very first time. From having the terms whole life, you can rest assured that this is the kind of insurance that will be able to cover all the things that get to happen in your entire life. What is great about whole life insurance than term life insurance will have to be the fact that the amount of your premium will just be the same all throughout your lifetime and never in increasing amounts. 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.
The maturity of some whole life insurance plans should be able to reach as high as a hundred years old. The end of the premiums will be in this age while it is also the time where the face value of such policy will be equivalent to its cash value. The insured must be getting this cash value then. Most of the time, a whole life insurance policy will not specify the length of maturity. In the calculation of the premiums of the one who is insured, the start of the computation is usually the age in which the insured gets the policy ending in the age of 85. Due to the fact that females have longer life spans, you can expect that their premiums are bigger in calculation than those of their male counterparts. This computation will help to determine the fixed premium amount that the policy holder must be able to pay be it on a monthly, half yearly, quarter yearly, or yearly basis.
So long as you will be regularly paying your premiums, you can rest assured that you will get a guaranteed death benefit. The beneficiary is the one that will be receiving the value or the amount the insured has been paying for his or her whole life insurance when he or she dies of old or young age, an illness, or an accident. The sum of money the beneficiary receives usually depends on the amount of money the person wants to be insured. 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.
The thing about whole life insurance is that there will be cash value on the part of the buyer. This cash value can be borrowed some money from. 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. However, if the cash value has already been used by the insured, he or she should continue paying for his or her premiums to avoid lapses.