Answer to readers question: Some insurance agents recommend this as a way to take advantage of the company’s promotional rates in the first couple of years. However, I feel that this involves the risk that you would be subject to a new contestability period. You always start a new contestability period anytime and every time you switch from one company to another. Remember that the period of time is generally two years. If you die during this period, the insurance company can and will probably investigate the statements you made on your application. If by chance you have given inaccurate or incomplete answers the company may and in all likeness probably will refuse to pay the death benefit.

Mark hopefully this will answer your question.

Answer to Readers Question:

Straight whole life insurance is a whole life policy that provides a constant level of protection and level premiums throughout the life of the policy which is until death of the policyholder or age 100 as long as the premiums are paid.

Limited pay whole life insurance is a whole life policy in which premiums are paid for a set number of years at which the policy is considered paid in full. i.e. a 20-pay policy in which premiums are paid for 20 years and coverage is good for life. The shorter the period for premiums the higher they will tend to be.

Single premium whole life insurance is a whole life policy in which one substantial single premium is paid at the beginning and from that point on the policy is considered paid in full. This premium gives it an immediate cash value.