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The whole life insurance policy assures a guaranteed death benefit that never decreases and upon death is usually free of federal income taxes. Take the death benefit in the form of a monthly income instead of a lump sum.
For whole life policy premium you start out with is the premium you will always pay. It will never increase. However decide to use dividends to reduce premiums you will pay a much lower premium than the actual premium amount.
Surrender the whole life insurance policy at any time, you will receive cash values. These cash values accumulate tax deferred.
If you own a participating whole life insurance policy you automatically become eligible to earn dividends on your cash values if the company performs well, which they usually do.
These dividends can be paid to you in cash, can be used to purchase paid up additions, to reduce premiums or they can be left to accumulate at interest.
posted by renaa
@ 6:42 PM
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