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Whole Life Insurance

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Whole Life Insurance

  1. 1. Whole Life Insurance
  2. 2. <ul><li>What is Whole Life Insurance? </li></ul><ul><li>What are the different types of Whole Life Insurance? </li></ul><ul><li>What are the strengths and weaknesses? </li></ul>
  3. 3. <ul><li>Whole Life Insurance is defined as insurance that provides fixed coverage for the life cycle of the insured. </li></ul><ul><li>It is permanent life insurance coverage for as long as you live and you continue to make timely premium payments. </li></ul><ul><li>With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. The guaranteed cash values can provide money later on to help with temporary needs or emergencies. </li></ul><ul><li>http://www.statefarm.com/insurance/life_annuity/life/whole/whole.asp </li></ul>
  4. 4. Types of Whole Life Insurance <ul><li>Traditional – Gives you a guaranteed minimum rate of return on your cash value portion. </li></ul><ul><li>Interest Sensitive – Gives a variable rate on your cash value portion, similar to an adjusted rate mortgage. </li></ul><ul><li>Single Premium – Is For someone who has a large sum of money and would like to purchase a policy upfront. </li></ul><ul><li>http://personalinsure.about.com/cs/lifeinsurance/a/aa012003a.htm </li></ul>
  5. 5. <ul><li>Strengths </li></ul><ul><li>- The premiums remain level over time and aren't unaffordable in later years. </li></ul><ul><li>- The amount in the cash value account that is built over time is tax-sheltered. </li></ul><ul><li>- Cash values accumulated can be borrowed against to help finance retirement . </li></ul>
  6. 6. <ul><li>Weaknesses </li></ul><ul><li>- The costs for full coverage for young people on limited incomes can be very high. </li></ul><ul><li> - Policies are difficult for the average person to compare . </li></ul><ul><li>-Termination of the policy in early years generally provides little or no cash value making it an inefficient for many years. </li></ul>

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