These days, a well structured and competitive premium received from a good whole life insurance quote can be a double-edged sword: in a good way I mean. It's like eating your cake and having it back. How you said? Well, whole life insurance policy in most cases will serve as both life insurance Policy redeemable by the insured's beneficiaries after death, or an investment that the insured can cash-out, borrowed from or even receive a dividend from. This is of course; if the premium is competitive and well structured to the advantage of the insured. Other than that, whole life insurance policy is not always a good investment -- even though it's generally known as permanent or cash-value life insurance.
For the insured, whole life insurance quote means that you are getting a life policy that is permanent with unchanging premium -- that remains in force for life as long as the premium is current, or fully paid, and was not secured through foul means. Though whole-life policy commands much higher premium, it does however, build cash value which can mean added security for some insured while they are still living. Unlike term life policy, whole life insurance policy quote provides the insured with both death benefit, and savings or investment options.
How does whole life policy differ from term life insurance policy?
There're few notable differences when you draw the; term vs. whole life insurance comparison, but the two most important differences are "premium and benefit."
Benefit: Because the whole-life or permanent policy accumulates cash value over time, the insured could receive cash benefits in the form of dividends, interest free loan, or some other form of cash pay-out, plus death benefit to his or her named beneficiary after death. Term-life policy on the other hand, is a death benefit only policy: either paid to the named beneficiaries at face value in cash, or for funeral and other death expenditures, or both.
Premium: As a policy that accrues interest over time and serve as both investment and life insurance policy; whole-life-insurance premiums are very expensive. And if not structured well, the high premium can out-weigh all the stated benefits making it a bad investment. Term premium on the other hand are less expensive, and more affordable by those who don't have much money -- and who are more concerned about protection than investment. Whole-life-policy commands high monthly premium or in some cases a high lump-sum premium, and that is why the threshold for cancellation against the insured is very high.
The advantages of whole-life policy over term-life is that it's used as both investment that accrue interest over time, while at the same time serve as complete life-insurance policy. Though it has flip side to it; which is high premium -- it's still a good policy for the well-off who can afford it, when it is structured well. Whole life insurance quote is not something you see young people, and poor people look for quite often ... it's an insurance policy meant for those with discretionary income to spare.
Emeka Ezidiegwu is a Webmaster, author, and Internet marketer. If you're informed by this article, please visit us for more related and informational articles at Quickinsuranceinfo, starting with: whole life insurance or term life insurance plus much more.
Orignal From: Whole Life Insurance Quote - Whole Life Insurance and Term Life Compared
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