Whole Life Insurance - Whole Life Insurance Information

The original purpose of life insurance was to provide for your family in the case of your death. While this purpose is still the most potent reason to take out a life insurance policy, there are a number of other ways that life insurance can be used to benefit you and your family, even while you are still alive.

The key is in choosing a whole life policy rather than a term life insurance policy. A whole life policy is sometimes called 'permanent life' insurance. It will cover you throughout your life rather than just for a specified amount of time, or a term. There are many advantages to a whole life policy over term insurance, and many ways to make a whole life policy affordable.

The cost of a whole life policy is based on the 'face value' of the policy ? the death benefit that it will pay if the insured dies. A whole life policy that will pay $100,000 if the person insured dies has a face value of $100,000. As you pay premiums on your life insurance, those premiums accumulate into a 'cash value' ? the amount of insurance that you've paid into the policy. Most companies base that figure on making payments for 100 years, which is the point when the face value and the cash value will be the same.

Generally, your whole life insurance premium will rise as you get older, reflecting both the added risks that come with age and the fact that your income will also likely rise as you grow older. This is often the most affordable option for young people who are just started to rise in the work world. You'll pay lower premiums at the start of your whole life policy, and they will gradually rise as you age.

Most life insurance companies offer the option of level premiums based on averaging out the cost of your whole life policy over the entire life of the policy. In that case, your premium will never change, but you will pay higher premiums early on in the life of your policy. If this is affordable for you, it's a good option to lock in a premium amount that won't leave you facing the prospect of losing your whole life policy before it matures because the premiums have become too expensive to maintain.

If you carry a whole life policy, you'll have the option to borrow against the cash value built into your policy under certain conditions. You can, if necessary, cash out your policy earlier, but a better option is to take out a loan from the insurance company against the accumulated cash value in your policy. It can be used to fund your children's education, to deal with unexpected expenses, or even to take a dream vacation. While you'll have to pay it back, it will be at much more affordable interest rates than you'd pay a bank.

If you have the option, an affordable whole life insurance policy can be one of your best hedges against unexpected expenses and retirement.

To view our recommended sources for life insurance, or to read more articles about life insurance, visit: Recommended Life Insurance Companies Online.

Carrie Reeder is the owner of eZerk, an informational website with articles and the latest news about various topics.

---

10 Ways To Save On Car Insurance

For most people car insurance is a the single largest... Read More

Affordable Insurance Quotes To Save You Money!

Whether you're looking for insurance quotes for auto, life, travel... Read More

Photography Insurance-Insurance for the Photographer

Part and parcel of establishing your own photographic business is... Read More

Auto Insurance Primer

What is auto insurance? Auto insurance (or car insurance, motor... Read More

Online Health Insurance Quotes - Finding The Cheapest Rates Possible

Shopping for health insurance can be very discouraging when you... Read More

Cheap Health Insurance - Health Insurance for The Self Employed

If you're self employed, you may think of health insurance... Read More

Young Driver Car Insurance

It has become increasingly difficult to get young driver car... Read More

Taking The Mystery Out Of Long-Term Care Insurance

Here's the good news: with improvements in medical technology and... Read More

Life Insurance Settlement

A new financial tool is now available for senior citizens.... Read More

Insurance Providers Weather the Storm While Consumers Flounder

We have just had the first year's anniversary of the... Read More

Health Savings Accounts (HSA): Do They Vary From State to State?

The Health Savings Account (HSA) is an amazing tool that... Read More

Ever Wondered What An Auto Insurance Claim Adjuster Does?

An auto insurance claim adjuster works for the insurance company... Read More

Consumer Directed Health Plans

Most of you have heard about "consumer directed health plans".... Read More

How To Best Handle Health Insurance Plan Changes

Many economists have suggested and recent economic data indicates that... Read More

What Is Homeowners Insurance Coverage?

Before attempting to find the best homeowners insurance coverage you... Read More

Long-Term Care Insurance: Eldercare Solution

When I suddenly had to become a fulltime caregiver to... Read More

Health Savings Account (HSA): Do I Lose It At the End of Each Year?

The Health Savings Account (HSA) is an amazing tool to... Read More

California Catering Truck Insurance

Catering truck insuranceNot many agents/brokers write catering truck insurance as... Read More

The Immorality of Guarantee Issue Health Insurance

While there are genuine debates about whether privatized health insurance... Read More

Can I Get Affordable Dental Care?

In the United States most companies offer their employees dental... Read More

Life Insurance Providing Little Protection from Terrorism

Recent statements by the City of London Police Commissioner James... Read More

The Awful Truth about Annuity and Insurance Leads

You see the websites, you see the ads: exclusive, never... Read More

Health Savings Accounts (HSA): How Do I Tell a Good One from a Bad One?

The Health Savings Account (HSA) is becoming well-known as an... Read More

Discount Insurance - Get Affordable Coverage For All Your Insurance Needs

Insurance is an important part of our lives. If you... Read More

Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto... Read More

Do Insurance Premiums Increase Every Year?

Many people ask, "If I am supposed to get a... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies... Read More

The Need For Life Insurance

A person needs to reexamine their life insurance needs every... Read More

What to Look for in Good Health Insurance

Health insurance is a kind of protection that provides payment... Read More

Why Dont Insurance Companies Reward Us for Being Healthy?

Insurance is always a gamble, a bet actually.You are betting... Read More

Why Should You Shop Around for Auto Insurance?

How do you know if what you are paying for... Read More

What Is Term Life Insurance?

There are two different types of life insurance, term life... Read More

What Is Meant By Automobile Insurance Standard Coverage?

Automobile insurance standard coverage is the basic amount of insurance... Read More