Whole
Life Insurance is Cash Value Life Insurance.
Whole
Life Insurance is the original permanent cash value life insurance policy.
A basic Whole Life Insurance policy has the following characteristics.
The Face Amount (coverage) is the same for entire duration of the policy.
In other words, a $100,000 policy purchased at age 21 is still a $100,000 policy at age 100.
The Premium
Amount (what you pay) is the same for the entire duration of the policy. This is an especially attractive feature for young
persons. Since life insurance premiums are based, in part, upon your age with younger folks paying less, a low-age premium is guaranteed
regardless of future circumstances.
The Cash Value grows at a guaranteed rate and the
policyowner is guaranteed the right to borrow from the policy by using the cash value as collateral for the loan.
The
Maturity (endowment) Date is age 100. If you live to age 100, the
face amount of the policy is paid to you
Premium Payment Options
There are several ways to purchase a Whole Life Insurance policy. One
option is called Single Premium. This is a one-time payment that purchases a life-long policy. It's the least expensive method if
you live a long time but could be the most expensive if death occurred early in life.
Most people pay premiums for as long as they own the policy,
monthly, quarterly, semi-annually or annually. As stated above, the premium
stays the same for the duration of the policy.
Limited Pay is a third option. Premiums are paid for a specified
period of time. For instance, you could select 10-year, 20-year or Paid Up at 65. Premiums would be paid during the specified period,
after which no further payments would be necessary but the life insurance would remain until death or age 100.
The Whole Life Advantage
Many forward-thinking parents and grandparents purchase a Whole Life
Insurance policy for children. This locks in the low premium rate for the life of the policy and guarantees that the child has life
insurance protection regardless of future health problems. The child assumes ownership of the policy when they reach majority
age.
Young people who want to guarantee life insurance protection for themselves
for the rest of their lives are attracted to Whole Life policies. They like the idea of locking in a low-age premium for life-long
protection.
More Options
The Family Policy - This is a package life insurance policy
the provides Whole Life coverage on the Head of Household and Convertible Term on all other family members. Additional children born after
the policy effective date are added automatically with no increase in premium. Adopted children may also be added with no increase
in premium.
Family Income Policy - This is a Whole Life/Decreasing Term combination
policy and is designed to pay income to the family survivors beginning at the death of the insured and ending when the term expires.
Joint Life Policy - This policy provides coverage on two lives
and pays the death benefit when the first person dies. This is also known as a First to Die policy. It's common for the two insured
persons to name one another as beneficiary. There is no insurance coverage for the surviving spouse.
Survivorship Life is a variation of the Joint Life policy. Two lives
are insured but a third party is named as beneficiary and the death benefit is not paid until the second person dies.
Modified Life is designed for young professionals just getting
started in their careers. Premiums are lower than average during the first few years when their earnings are lower. After the stated
period of time (usually 3 - 5 years) the premiums increase to an amount that will remain level thereafter.
How May We Help You?
The agents at McGhee Insurance Agency have been trained
to help you get the best coverage at the best price for your personal situation. Contact one of our offices for a life insurance quotation
or more information.
Little
Rock Office: (501) 224-6666 or 1-888-214-3149
Sherwood Office: (501) 392-0300 or 1-888-861-8368
Conway Office: (501) 327-4666 or 1-888-563-5656
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