What Is Whole Life Economic Policy?

A whole life economic policy is a type of life insurance that can provide you with a growing death benefit over the years. Here are the basics of a whole life economic policy and how it works.

Whole Life Economic Policy

With a whole life economic policy, you are going to be able to receive payments back from the insurance company when they determine that they do not need all of the money that they have charged in insurance premiums. When they give you this refund or dividend, they are going to credit the money back to your account. With this money, they are going to then purchase additional term life insurance for you. By doing this, you are actually going to be able to get an even larger death benefit plan what you have from your regular whole life insurance policy.

Considerations

Even though sometimes this can work in your favor, other times it could cause you problems. For example, if the insurance company has a bad year financially, you are going to find that your death benefit is going to actually decrease. Therefore, this policy can cause the death benefit to fluctuate greatly from one year to the next.

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