How Do You Define Whole Life Insurance?
I went to Answers.com to define whole life insurance. A type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. Upon the inevitable death of the contract holder, the insurance payout is made to the contract’s beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against. Let’s look at some components that make up a whole life insurance policy. 1. for his/her entire life The policy is structured to last you your “entire life” instead of a “term”. As long as you keep paying the premiums, the policy will be in force regardless of age and health. 2. beneficiaries Just like term life insurance, beneficiaries exist in a permanent life insurance policy. But, what many fail to realize is that there are living advantages within this contract. You yourself can benefit if you utilize the living benefits. Of course, being aware of them is the first
