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The Whole life coverage insurance policy.


Whole life insurance is a kind of insurance policy which comprises providing insurance to the insured from the period he takes the insurance policy to the period that one passes away. The premium for this kind of insurance is higher when one is at the old age and lesser when one is still young. This is because of the natural cases of death and life expectancy statistics which always point out that a person at older age is more exposed to death compared to younger persons who are still active and have strong healthier bodies. Many of the insurance companies offering this kind of insurance term whole life insurance as a insurance policy that provides benefit s incase of death of the insured person. The listed beneficiaries as provided by the insurer are suppose to be given the cash with reduction of all the amount the insured must have used for like loans that one used the insurance policy cash value as security. The whole life insurance policy only works when the insured passes away.
Incases of defaulting of premium the insurance company is at liberty to terminated the policy and the insure is entitle to the sum total of the premium he/she has contributed less the defaulted period before the policy is terminated. In situations the insured passes away before the policy has accumulated an amount that is equal to the death benefit as provided for in the policy the insurance company pays the net amount at risk. It is the difference from the total dead benefit and the current cash value of the amount.
Some of the advantages of this kind of insurance is the benefit that the listed persons by the insured get as a result of the insured passing away. Other include the policy being a security for securing loans ,mortgage and other money market offers in the market this is because the insured retains rights for the money value. It also a saving plan and one can always get cautions’ against losses from other saving schemes like shares which loose value as a result of losses and recession. The premium rates are predictable annually. Its disadvantage that its return rate may not be competitive enough compared to the market investment options. Persons who are involve in risk lifestyle like riders, athletes who participate in high risk games and soldiers are always charge a higher amount compared to professionals whom work and lifestyle is not that risky. The age as mention earlier is also a factor in this kind of life insurance policy.
 
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