Whole Life Insurance

Below are points to remember about whole life:

  • Because of the contestability period (where a life insurance carrier can fight paying a claim or death benefit) however you might better off buying a new or supplemental whole life insurance policy that canceling any term life insurance you may have.
  • Your old life policy was purchased when you were younger, therefore the rates will likely be lower.
  • The cash surrender value on your whole life insurance policy refers to the amount payable to you, the policy holder, upon surrender of the policy. The cash surrender value is equal to the cash value minus surrender charges, borrowing costs, interests or monthly contract charges currently outstanding.
  • If you change a beneficiary, you might also have to include a copy of your marriage certificate or other court document.
  • Recall that whole life insurance coverage remains in force until age 100 as long as the specified premiums are paid on time.
  • With whole life insurance, you obtain protection plus ongoing cash value.