Whole Life Insurance: 4 Questions and Answers

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<h1>Whole Life Insurance: 4 Questions and Answers</h1> by Gert Hough <div align=justify>A life insurance policy is important if you have someone depending on you for financial support. You may be interested in whole life insurance. Well, here are 4 questions answered about whole life insurance. 1. What is whole life insurance? It is an insurance policy that offers life coverage and an investment opportunity to you. The investment may be in bonds or stocks. The premium you pay is divided between the insurance and the investment. Life insurance is designed to protect your family and other people who may depend on you for financial support. Having the right insurance protection can assure anyone of long-term financial freedom and peace. The policy stays active untill you either cancel it, stop paying the premiums or die. In the event of your death, the policy amount is paid out to the beneficiary you named. If you choose to cancel the policy, you can receive the current cash value of the investment. You can contact a life insurance broker for more information. 2. What are the possible advantages of whole life insurance? <UL> <LI>A part of the money you pay into a whole life insurance policy is invested and accumulates a cash value. <LI>You may borrow money against the cash value at the current policy loan interest rate. Just remember that this may reduce the overall value of the policy. <LI>A whole life insurance policy may earn dividends if the actual insurance cost turns out to be less than the calculated premium. <LI>You can use a whole life policy in your estate planning by setting up an insurance trust that may pay your estate taxes from the returns of the policy. <LI>A part of the money you pay for your premium is invested by the insurance company and accumulates a cash value. This could be used to pay off the entire policy. </LI></UL> 3. How good is the return rate on a whole life policy's investment? Not very good compared to other investments. Remember that whole life insurance primarily offers life coverage. The cash value is just an added bonus. For more information, you should contact your life insurance broker. Before you contact your life insurance broker, I suggest you collect different life insurance quotes which you can get for free from online insurance companies. The more quotes you get the better understanding you get about what is available and at which monthly rate. You can search for such companies at http://freewholetermlifeinsurancequotesonline.com. If you want to find the <A href="http://freewholetermlifeinsurancequotesonline.com">best life insurance company</A> to handle your personal life insurance, you have to be prepared when you go to your local life insurance broker. 4. What about medical exams for life insurance? To purchase life insurance you may be required to undergo a medical exam. Life insurance companies need to administer medical exams in order to determine how much premium to charge a potential policyholder. When reviewing risk, insurance companies automatically divide people into two groups: smokers and nonsmokers. Heart disease, diabetes, rheumatoid arthritis, multiple sclerosis, hepatitis C, a past stroke or a recent history of certain types of cancers may also place you in this risk category. If you engage in activities that the insurance companies believe are risky, it could increase your premiums. An insurance company life insurance broker will be able to inform you about what behaviors their company deems risky. That was 4 questions answered about whole life insurance. Getting life insurance quotes online is easier than you might think. All you have to do is to submit your name and email to receive free online applications for life insurance. </div> Article source: <a href="http://www.ArticlePros.com/finacces/Life-Insurance/article-97625.html">ArticlePros.com</a> <table align=center width=550 cellspacing=1 bgcolor=silver cellpadding=5> <tr bgcolor=antiquewhite> <td> About the author Copyright 2007 - ***Gert Hough***. All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active. http://freewholetermlifeinsurancequotesonline.com <a href="http://freewholetermlifeinsurancequotesonline.com" target="_blank" title="will open in new window" class=blue>http://freewholetermlifeinsurancequotesonline.com</a> <input type=button class=asubm value="Other articles by Gert Hough" onclick="document.location='http://www.ArticlePros.com/author.php?Gert Hough'" style="height:20px;cursor:hand"> </td> </tr> </table>