Pros and cons of whole life insurance - Part 2
By admin on February 25th, 2010Whole life insurance is a permanent indemnity until you reach the age 100. Not for the rest of your life. As a matter of fact you will not receive the funds from life insurance until you reach the age 100 which is a cut off point that is statued by the Insurance commisioners board. Whole life insurance also invlves cash value/ investment you will not likely get in return, which is often difficult to explain to someone who has no knowledge of insurance terminology. But I will try my best to break this whole life insurance thing down for you.
1. Your whole life insurance is based on your human life value, pretty much how much your worth at the time of purchase.
2. As mentioned before you will not receive money until you die or reach age 100, so anything promising for childrens future and so forth is bull.
3. As you get older so will your premium yet your "investment" cash value decreases.
4. This is a pretty good insurance for the wealthy, and I mean wealthy. It pretty much creates an estate planning guideline for the rich. So when they set up an insurance trust, their estate is paid off once they die.
