Easy To Apply Whole Of Life Insurance
As the name implies, this policy gives you protection for life. Whole of life insurance pays out a lump sum that is tax-free when you die, as long as the monthly premiums are paid. This kind of insurance is expensive than term assurance as the payout is guaranteed unlike the term assurance.
The contribution made by you is invested into a fund and the benefits are purchased from that fund. The performance of the fund primarily determines the future benefits. The changing mortality rates also affect the future benefits. The premium is fixed for first ten years and then it is reviewed to assess the growth of the investment fund. After assessment it is possible that either the sum assured reduces or premium increases.
Benefits of Whole of Life Insurance
- As you pay the premiums after-tax dollars the cash value increases without taxation.
- You can borrow against the policy to meet financial emergencies.
- The premiums paid go straight towards increasing the cash value. The more you pay the death benefit increases.
- You are entitled to dividend that is also tax free as they are considered to be returns on the premium paid.