What is Whole Life Insurance?

What is whole life insurance?  In general, it is an option to buy life insurance that lasts as long as you live and as long as you make the payments.

Whole Life Insurance Details

The payout on whole life insurance gains interest over time. The more time that passes, the higher the payout will be. For this reason, it is advantageous to purchase whole life insurance at a young age.

The premiums on whole life insurance policies remain constant over time. If you purchase the policy when you are young and low risk, the premium will remain inexpensive over your lifetime.

Whole life insurance policies may gain dividends if the actual payout is less than the premiums covered. In this case, the insurance company will pay the beneficiary an amount to even out the money that was paid to cover the excess payments that were made.

You can borrow money from your whole life insurance policy because it incorporates investments. This is why whole life insurance policies are more expensive than term life insurance policies.

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