All life insurance was originally term insurance. However, because term life insurance only pays a claim upon death, a number of term Life Insurance policy holders became angry over the idea that they could be paying premiums for more than a decade and then end up with nothing to show for it.
In response to market pressure, insurance companies conceived of an Insurance policy with level premium payments that were higher than traditional term insurance policies. These contracts would offer cash value, which was designed to be cash reserve that would build up against the policy.
Whole Life Insurance and Cash Value
These policies would also credit interest to the cash value account and upon maturity of the contract; the cash value would equal the death benefit. By guaranteeing the death benefit, the policy owner was guaranteed that the insurance coverage would be in force when the policy holder passed away.
Whole Life Insurance Death Benefits
Upon the death of the insured, the cash value would be surrendered to the insurance company and the beneficiary will receive only the death benefit. If the policy holder wishes to borrow the cash value” it must be paid back with interest or will be taken from the monthly premium. We are inspired to help you find affordable, cheaper term life insurance.
Cheaper Whole Life Insurance or Permanent Life Insurance
There are several types of whole life insurance policies. The six traditional forms are, non-participating, participating, indeterminate premium, economic, limited pay, and single premium. A newer type is known generally as interest sensitive whole life. Other states may classify them differently, and not all companies offer all types. There are as many types of insurance policies as can be written in their contracts while staying within the law’s guidelines.
All values related to the policy usually determined as a policy issue, for the life of the contract, and usually cannot be changed after it is issued.
Cheaper Term Life Insurance Quotes
We offer more than just Whole life insurance quotes and rates. We provide Cheaper Term Life Insurance quotes, and information to get you started today. Our Professionals will help you find the best Term Life or Whole Life Insurance coverage for you and your Loved Ones.