Whole life insurance provides a lifetime level premium until the policy is literally paid-up. This could be 10, 20 years … or when you reach age 65, 85 or 100. One big advantage is you don’t have to worry about your policy expiring before you do.One type of life insurance policy is not necessarily better than another. But it’s critical you understand what you are buying, how it works and your net cost.After all, if the policy isn’t in force when you die you have thrown your premium dollars right down a rat hole.
Anyone who cons you with this bunch of malarkey has absolutely no idea how to intelligently evaluate the purchase of life insurance.An excellent life insurance policy to consider is universal life. This is the type of policy that guarantees the death benefit up to age 115 regardless of the performance of the underlying investment.
But be careful because some universal life policies are sold by focusing on projected interest rates rather than contractual guarantees.If you are considering the purchase of a whole life insurance policy from a mutual company that declares annual dividends, ask the agent for a hypothetical illustration using a dividend forecast at least one percent less the current rate.
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