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.