Readers Question: Rani lives in Johnson City, Tennessee and her question was: “What is whole life insurance?”

Answer to Readers Question: I will do my best to answer this question so that you can understand the issues.

Whole life insurance is known as ordinary life, permanent life, or straight life insurance policies. Whole life insurance policies build up a cash value after the first year. You pay a fixed premium for life instead of the increasing premiums found on renewable term life insurance policies. Whole life insurance is a type of permanent life insurance and unlike a term life policy, a whole life plan offers you a guaranteed benefit.

Whole life insurance may be something you completely overlooked when making your decisionon buying life insurance. Yet it may be one of the best financial products somebody can own, and it offers the guarantee that any parent truly wants. Whole Life Insurance pays a death benefit to the beneficiary you name and offers you a cash value account and tax-deferred cash accumulation. The policy remains in force during your entire lifetime and provides permanent protection for your dependents while building a cash value account.

Whole life insurance coverage can help your survivors maintain their standard of living, pay their mortgage, finance college, build a nest egg, etc. Whole Life insurance gives you peace of mind where you don’t have to worry about renewing or converting your policy. Whole Life Insurance is always there for you, so long as you continue to pay the premiums on time. Whole life insurance can provide funds to compensate for loss of retirement income and additionally, whole life has cash value that can be accessed through a policy loan or can be converted to an annuity to supplement retirement income when insurance is no longer necessary. Whole life insurance policies are actually issued with a termination date built in and this date is usually on your 100th birthday.

Whole life insurance is there to provide benefits for a long term economic sovereignty and harmony to your beloved ones.Whole life insurance is there to provide the liquid funs that your family may need at the time of your death, to pay costs associated with your estate and also provide funs for yoru military family so they do not have to liquidate other assets. Whole life insurance policies provide permanent life insurance protection until ou die.

Whole life insurance provides benefits for the long term. It provides death benefits and builds cash value throughout the life of the policy. Whole life insurance can be there to provide the liquid funds that your family may need at the time of your death, to pay costs associated with your estate. A whole life insurance death benefit can provide funds for your military family so that they do not have to liquidate other assets such as equities or real estate at an inopportune time. Whole life insurance policies provide permanent life insurance protection until you die, as long as premiums are paid when due. Premiums for whole life policies generally remain level.

Jon lives in Jackson, Tennessee and he is planning to provide security for his family and in doing so had several questions to ask me about insurance coverage and the easiest way to go about it.

Jon what I recommend is that you consider buying a no exam term life insurance because the rates are as low as $3.27 per month. There is no waiting period, no medical exam necessary and it requires only just a few yes/no answers to some questions. You can get any amount you want from $5,000 to $50,000. The rates are based on your current age and are guaranteed for the life of the policy. The coverage is also available for your spouse and other members of your family. Benefits will never be cancelled or reduced for the life of the policy if premiums are paid on time. Your benefits are paid free of federal income tax.

You can also get life insurance on your children and grandchildren. The rate is based on your children’s age and is guaranteed to stay the same for the rest of their life. This will give your children a financial head start right now and your policy also builds cash value and you can use the cash for your family’s needs. The benefits will never be reduced or cancelled regardless of future changes in age, health or occupation.

Thanks

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.

No exam term life insurance is when a medical exam or blood test is not required to receive coverage and can be approved up to $750,000 and only requires that you answer a few questions about your health.

Start by going online, compare and shop no exam life insurance quotes, with a discount. Get Affordable term life insurance quotes online. Decide how much life insurance do you need and for how long. Once you get your affordable term life insurance quote online you can make payments online too and get your policy with a 30 days guarantee and be insured on the same day without leaving your office or home. You can get coverage in minutes- 100% online.

Life insurance secures the financial status of the family after your death. This will protect your asset for your family’s financial security.

Chattanooga, is the fourth largest city in Tennessee. The city lies at the transtion between the ridge and valley portion of the Appalachian Mountains and the Cumberland Plateau and is surrounded by ridges. The city is known for the 1941 big-band swing song “Chattanooga Choo Choo” by Glenn Miller.

Susan, thank you for asking:This means that the company is ceasing to be a mutual company (owned by the policyholders) and is becoming a corporation. For a customer of that company it means that you will no longer recieve dividends if you have been recieving them and that your rates will likely go down slightly. In most cases the company will send you some sort of correspondence throughout the process… which could take years. But if you need an answer at this time, please contact them immediately.