Whole Life Insurance Quotes - Getting To Understand What This Insurance Is All About

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As the name suggests, whole life insurance is an insurance policy where an individual, who is referred to as a contributor, pays a particular amount of money to an insurance company for as long as he or she is alive.

The idea here is to provide a way out for people who depend on the contributor's income to continue with their activities and meet their financial obligations, even after the contributor has passed on.

Whole life insurance has several plans that an individual can follow, and it is up to the contributor to choose the plan that works best for him or her, and the one that will greatly benefit his or her dependants. Here are three plans that can work for you.

1. The traditional whole life insurance policy

The good thing about this policy is that you will never have to pay more money with time, meaning that there are no renewals or conversions required. Furthermore, if you get to a point in life that you need a loan to begin a project or fund an existing one, it is possible to borrow against this insurance policy.

Contributors to this policy also get to enjoy an increase in their cash value, not to mention that the beneficiaries will get the money tax free.

2. The universal life insurance policy

The unique quality about this insurance policy is its flexibility, since the contributor can determine how often or even how much he or she is willing to contribute over a period. In addition, the contributor can also adjust the value of the policy on either direction, and there are no new policies whenever such changes are effected.

Finally, if you get to a position where you need some money, the option of withdrawing part of your contribution is still on the table, though such a withdrawal will affect the death benefits and the value of the policy.

3. Variable universal life insurance

Other people refer to this insurance as a flexible premium universal life insurance. This is because it has a bit of every other insurance policy falling under the category of whole life insurance. Most people like it because of their ability to pay premiums in their most preferred way, the control that they have over the value of their investment, and just how flexible the death benefit from this scheme is. The need to increase death benefits to the dependants is catered for by an increase in contributions, and the same applies if the benefits required might not be as much as required.

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