Are you currently in the market to buy a whole life insurance policy? Are there some things about the whole life insurance plan that are still leaving you confused? Our compilation of the frequently asked questions about whole life insurance should certainly be of help to you.
At what time should I consider purchasing a whole life insurance plan?
You should buy whole life insurance when you are ready to have a permanent life insurance. Also, you should consider it when you are building your retirement plan.
How is whole life insurance different from term life insurance?
Term life insurance policy has a definite period that it provides coverage. Whole life insurance, on the other hand, provides coverage during your entire lifetime.
What are the advantages of a whole life insurance policy?
It has a fixed premium that is not affected by inflation or market fluctuations. Also, you can use it as a type of savings accounts to build cash value.
What is the cash value?
The cash value is simply the lump sum of your premium payments that is tax-deferred. As the cash value build up overtime, the life insurance company can allow you to access it.
Can I borrow from my whole life insurance plan?
Yes, just as long as your cash value contains sufficient money. However, it might take up to 2-3 years for you to be able to borrow.
Will I have to make premium payments for the rest of my life?
Yes, you will have to pay premiums for as long as you are living. However, some whole life insurance plans can allow you pay your premiums at once or until a certain age.