A Whole Life Insurance Online Quote Can Get You Off On The Right Track

If you are in need of a whole life insurance online quote then there’s a great chance that you’re already familiar with these types of life insurance.  If that’s the case then go ahead an feel free to proceed with getting your quote. However, if you’re not familiar with how whole life insurance works then we highly recommend you read this entire page before you proceed.

A Whole Life insurance policy covers the insured person(s) for their entire life, up to age 100 years. Whole Life policies pay the Face Value when the Insured dies or reaches age 100.

Part of the Whole Life premium goes to buy insurance protection and part goes to build a Cash Value. The Cash Value is guaranteed by the Insurer as long as the policy is in force. The Cash Value is retained by the company when the Insured dies while the policy is still in force. The Cash Value goes up each year that the premium is paid.

Some state laws require that Cash Value MUST exist by the end of three years.

The Cash Value can be borrowed by the policy owner, this creates a loan against the policy, which results in a lower death benefit if the loan is not repaid.

Whole Life Insurance is called “Straight Life”, or “Continuous Premium Whole Life” or “Ordinary Whole Life”. It is kept in force by paying a level premium for your entire life, up to age 100 years. At age 100, the policy is said to have “matured”. At maturity the Cash Value of the policy will then equal the Face Value.

In all Level Premium Plans, the insurance company overcharges the Insured in the early years and undercharges in later years.

Whole Life policies do not have to be renewed or converted into any other type of policy. The term “Straight Life” refers to the length of premium payment period, which occurs during the remainder of your whole life.