A Whole Life Insurance, as the term indicates, covers a policy that serves effective throughout the life of the insured person. Typically, the insurance owner will be required to pay premiums which can be arranged to be funded in a number of yearly payments or one-time payment comprising a large premium sum. For many, this type of insurance is thought of as a good foundation towards a financial stability that can last through lifetimes.
Whole Life Insurance policies can be categorized into six traditional types as defined by the state of New York.
* Participating. With this type of insurance policy, the dividends or the superfluous profits made by the success of the company will be refunded or shared with the insurance holder.
* Non-Participating. Also referred to as non par, this form has insurance values that are pre-determined which usually remains unaffected during the course of the contract, no matter the issues that arise.
* Indeterminate Premium. Just like with the Non Par form, this type of Whole Life Insurance offers a fixed portion of the maximum premium where the premium may change yearly.
* Limited Pay. Poses features quite similar to Participating with the difference of having to pay premiums that are set for a certain time span. This Whole Life Insurance may be arranged in such a way that the policy will be paid fully at the time the holder reaches a specified age but the policy remains effective for life.
* Single Premium. This type requires a funding that entails a single advance payment.
* Economic. Is a form of Whole Life Insurance where a fraction of the extra profit will be used to buy additional terms in the insurance, thus making up for a higher yielding death benefit.
So, why choose Whole Life Insurance?
The only thing in life that remains constant is change. Markets and the economies fluctuate and adjustments in lifestyles may occur over time. With Whole Life Insurance, many adjustment options can be availed of to make the policy suit your personal and financial needs whatever the times.
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