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Whole Life Insurance: Protecting You 100%

Jan 8, 2008
Whole life insurance has many advantages for every person around the world. Lifetime insurance is beneficial and has many advantages. Just think that there is always someone that would take care of your children if God forbid you are not there for them. Think your children can not go to school colleges or universities because you do not have enough finances with you so that your children could continue with their studies or you and your family could not live in the house you were living before because of the financial problems. It is very necessary that you should have the financial assistance with you all the time.

Generally there are two popular types of life insurance: Term life and whole life Insurance. The former type of insurance, although is the cheapest type, is only available for a limited time, also known as term. After that time limit is reached the policies are no longer effective. Whole life Insurance policies provide coverage for our entire life thus ensures to provide financial protection to any plan that we have.

In whole life insurance an investment fund is setup to assist you. During initial years a part of premiums is used to pay for life insurance coverage while rest is added to investment fund. This leads to building up of fund with each passing year. This investment fund can be used for any purpose may it be to pay premiums or use in case of an emergency, depending on policy holder's needs.

During initial years, the premiums are relatively low but as the policy holders age increases, the rise in insurance cost leading to increased premiums is not a surprise. It is common to face the problem of either choosing to lower your life insurance or pay increased premiums.

Like this the element of investment arises on its own. The funds of investment can be used to supplement such premiums that are paid and it is ensured that even though the cost of the insurance cover has been increased, the cover itself could be maintained at no cost that is extra to the holder of the policy. In some cases the premiums can be stopped from being paid to the holder of the policy, anyhow the cost may be covered up from the funds of investment. Investing funds alone can cover up such a cost.

Contract of the whole term life insurance tends to be very helpful when the holder of the policy ensures that a sum of the money should be available on the death of the holder of the policy. Many of us have to pay tax that is we also have to pay the inheritance tax. It can be ensured and it is very helpful that the tax could be paid from the whole life insurance policy. Like this a person can benefit his/her family through this lifetime insurance policy that is so helpful that even your tax is paid from your policy.

There are a number of options available with whole of life insurance contracts because they are very flexible. As there is an investment fund to maintain cover, the option of taking premium holidays is available. The holder of the policy owns the investment fund, so if an emergency crops up, for maybe a loan, or as collateral security against a mortgage or loan, the policy holder has several options, which may not be available in other insurance contracts, which are non-investment based.

Taking the time to understand how a whole of life contract works and how it can secure your family's future is an extremely good idea. Once you have grasped that there are two components, the insurance cover and the investment fund, they become rather simpler to understand. Understanding how to protect your family is key if you are serious about ensuring that your family will continue to enjoy the financial security you provide for them today.
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