Whole Life Insurance Quote
How a Whole Life policy Works
Whole Life Policy is a type of life insurance policy that provides coverage for lifetime or up to age 99 or 100 years old. If the insured dies, a death benefit will be paid. However, most whole life policy acquires cash value. This means that the policy accumulates savings over the years and upon surrendering the policy, the cash value will be returned.
However, it is important to take note that, surrendering whole life policy before certain number of years (usually more than 10 - 20 years), you may not get back the total premiums you have paid. Also, the amount of cash values differs between different types of whole life policies.
Recent years, insurers also have introduced 5,10,15,20 and 25 premium paying years called "limited pay" whole life policies which guarantees that no payment is required after the X years while coverage will continue for lifetime.
How much does whole life policy cost?
As there are cash value element in the policy, the cost of term insurance is relatively higher than Term insurance.
Most people who bought limited pay whole life policies like the lifetime cover.
They would also attach critical illness or early stage critical illness riders to these limited pay whole life plans so that the riders coverage continue after premium paying years while enjoying lifetime of early stage/ critical illness protection.