What is the permanent whole life policy?
I have one for the last ten years and i was told if i wanted/needed cash i could pull the money off. when i tried that (graduate school) they told me that is not the terms of the policy. I do get a dividen check at the end of the year about 20 bucks
PERMANENT MEANS EXACTLY THAT. YOUR INSURED FOR YOUR WHOLE LIFETIME IF YOU CONTINUE YOUR PREMIUM PAYMENTS ON TIME. THERE ARE SOME WH. LF. POLICIES THAT EARN INTEREST AFTER A FEW YEARS. HOW MUCH DEPENDS ON THE SIZE OF THE INSURANCE. EVEN ON A LARGE POLICY IT TAKES ABOUT 15-20 YEARS TO ACCUMULATE A SUBSTANTIAL AMOUNT. YOU CAN BORROW THAT FROM THE POLICY, PAY IT BACK, OR, THE LOAN WILL BE DEDUCTED FROM THE DEATH PROCEEDS AT DEATH OF THE INSURED. TERM POLICIES ARE FOR 5; 10; 15; OR 20 YEARS, THEN THEY TERMINATE AND YOU HAVE TO RENEW AT YOUR PRESENT AGE,
( SO IT GOES UP ). THESE DO NOT EARN INTEREST AS THEY ARE RELATIVELY INEXPENSIVE TO CARRY. A TEN YEAR TERM POLICY ON A 25 YEAR OLD FOR 250,000.00 COSTS ABOUT $30.00 A MONTH. A WHOLE LIFE POLICY, SAME AGE, WOULD COST ABOUT $85.00 A MONTH. THESE FIGURES ARE FROM THE TOP OF MY HEAD, NOT ACTUAL QUOTES. I USED TO SELL LIFE INSURANCE, RETIRED NOW.
Permanent whole life is a kind of life insurance that provides lifetime protection to the insured provided he or she would pay the annual premium. if he or she stops paying, the life protection also stops. because of the fact that it is a permanent life policy, you can earn dividends from the policy. it came from the surplus earnings of the insurance company. you cannot get the money you have paid for your life insurance protection but you can check out your policy's cash values if there is any. if you surrender your plan, all you can get are the cash values of your policy and not the money you have paid for your premium. whole life insurance's purpose is mainly focused on life protection and not savings.
Answers: