Wednesday, 8 June 2011

Whole Life Insurance



Whole Life Insurance, also called Permanent Life Insurance, is bought for the rest of your life. You'll pay more than you would for term life insurance, but whole life insurance premiums do not increase with your age after you buy. This is one of the selling points.
In the early years of the whole life insurance policy when you're a low risk, you'll pay more in annual premiums than you would with a comparable term life insurance plan. However, you become a higher risk at an older age, and the cost of term life insurance goes up. Therefore, the premium eventually becomes less than the cost of a comparable term policy.

2 comments:

  1. The basic and immediate benefit of financial planning is in having a controlled monthly budget. Having a well defined strategy regarding your monetary resources and its allocation among expenses, savings and investments will motive a family to stick to their monthly budget.

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