Whole life insurance is a type of insurance that provides death benefits to the policyholder and their beneficiaries for as long as the policy is in force. Whole life insurance policy are also known as perpetuity policies, because the premiums you pay each month continue to provide benefits to you and your beneficiaries even if you die before the policy expires.
Some key things to know about whole life insurance:
1. Whole life policies typically have a lower initial premium than other types of insurance, but the premiums you pay each month continue to provide death benefits and other benefits until the policy expires or you choose to cancel it.
2. You can use whole life insurance proceeds to cover funeral expenses, inheritance taxes, or any other financial needs that may come up in the event of your death.
3. If you want to cancel your whole life policy before it expires, you will usually have to pay a cancellation fee.
4. If you die before your whole life policy expires, the benefits you have accumulated will go to your beneficiaries.
It is a type of life insurance that typically provides death benefits for a set period of time, such as 10 or 20 years. The policyholder pays premiums, and the insurance company pays the claims if something happens to them. There are no annual premiums with whole life policies, and the death benefits are guaranteed.