A Few Things You Should Know About What Is Whole Life Insurance?
You would have heard often the question about what is whole life insurance. Though you must be aware that the whole life insurance is an insurance policy that covers life, you and a good majority of people would have no idea about anything else it involves.
What Is Whole Life Insurance?
The whole life insurance is indeed an insurance policy meant to provide coverage for a person's entire life or until they complete 100 years of age (whichever would come first). The payment for this policy would be spread throughout your life. However, there are special whole life insurance policies where you could finish paying the premium by a pre-agreed age, for example, by the time you reach 60 years of age.
In the second case, the premium would obviously be very high, but the benefit remains that after whatever cut-off age has been agreed upon there would be no more payments, while the benefits would be the same.
What Is Whole Life Insurance Norm?
In order to be eligible for the whole life insurance you would need to undergo a physical examination so the company would be assured that you are not hiding any pre-existing diseases or medical problems that would cause them any type of loss. In case you are found suffering from AIDS, Diabetes, Heart Problems, or Cancer you would not be eligible to draw this whole life policy.
There is more benefit you could get from whole life insurance. The premium you would be paying the company would be split into two parts - one part goes to pay for the policy and the other goes for investment whereby you get to earn high returns over time. In time this sum becomes quite large and it is normally used as collateral for different loans.
If you look at what is whole life insurance, you would find that basically it is a safety net for those who would be left behind - because there is no payment done to the insured person during his or her lifetime. Rather, the insured person cares for someone in real life and through the insurance it makes it possible to buy some peace of mind knowing that if anything untoward happens, your nominees would have sufficient ash to cover their needs.
Hopefully, the above explanation has offered a satisfactory answer to the question on what is whole life insurance, which is now gradually being replaced by term policies for convenience and good returns.
