Non Smoker Whole Life Insurance Rates

Posted on November 20, 2011 by Admin
Non Smoker Whole Life Insurance Rates

Non Smoker Whole Life Insurance Rates

Whole life insurance is a type of policy that is designed to cover you for the entire span of your life whereas term life insurance only covers you for a specified amount of time. In most cases, however, your premium and death benefit will remain the same. With a whole life insurance policy, you earn money; the insurance company invests your premiums and in turn you build cash value. In the U.S., this money is tax-deferred until you decide to make a withdrawal; you can also borrow against your life insurance policy.

There are additional choices within a whole life insurance policy, which typically include the traditional option, single-premium option and the interest-sensitive option. According to the April 1, 2005 Bankrate article, “Permanent Insurance”, the traditional option provides you, as the policyholder, with a cash value minimum guaranteed rate of return – much like an adjustable-rate mortgage. The single-premium option is ideal for those who would like to purchase the policy upfront as well as customers who have a large sum of money. This option also has the cash value and tax benefits. The interest-sensitive option gives the policyholder the chance to increase their death benefit without increasing their premiums; this is dependent on the rate of return and the current condition of the economy.

Benefits of having a whole life insurance policy include the fact that a portion of your premium goes towards your cash value -- unlike term insurance -- and generally after a few years, allows you the option of paying off the rest of your policy. Also, you can choose whether or not your premium will remain the same throughout your coverage time. Another benefit is that you will have lifelong insurance coverage without the requirement for additional medical exams in the future.