Whole Life Insurance policies are state specific and not all insurance companies offer whole life insurance policies to residents of all states.
Whole Life Insurance policies provide permanent coverage on the life of the insured.
The premiums paid into Whole Life Insurance policies remain the same for the duration of the policy.
Generally, the premiums must be paid for the Whole Life Insurance policy to remain in force.
The cost for issuance of a Whole Life Insurance policy is a function of the age(s) of the insured, their health condition, their smoking habits, the amount of life insurance coverage, and the payment period wanted.
A portion of the premium paid is credited to a cash value tax deferred cash accumulation account.
The issuing insurance company credits dividends and interest to policy owner's cash accumulation account. This rate varies from underwriting insurance company to underwriting company and changes from time to time.
Policy loans are available.
Whole Life Insurance policies are used for in numerous situations and for many purposes, including: estates, business purposes, buy-sell agreements, key employee plans, executive bonus, split dollar, golden handcuffs, retirement plans, educational funding plans, etc.
All Whole Life insurance policies have a named owner, a named insured and named beneficiaries designations. These three different designations can be the same person, but in many situations they are not necessarily set up with the same designations. Which is the most appropriate designations to use depends on different variables and situations.
Someone or a company or a organization can be the owner of a Whole Life Insurance policy on someone else's life only when he/she or a company/organization has an "insurable interest".
Most Whole Life Insurance policies are issued only after a medical questionnaire and in some cases only after medical tests.
Some companies offer instant issue policies.
Effectively, once a Whole Life Insurance policy is issued by the insurance company that policy is guaranteed without a new physical, no matter your health condition, as long as the owner pays the premiums on time.
The death benefit payable to a beneficiary upon the death of the insured is dependent on the claims paying ability of the issuing life insurance company.
The death benefit payable to a beneficiary is income tax free, and in some case estate tax free, which is dependent on a number of factors.
Some life insurance companies offer 2nd to die whole life insurance coverage which is payable upon the death of two or more lives.
Some life insurance companies offer affinity group whole life insurance, group life insurance, and some offer features which provide benefits under certain medical conditions during the life of the insured.
Some USA based life insurance companies offer policies for non USA citizens, non USA residents.
Some financial professionals feel from a financial value perspective the one should consider "BUYING Term and INVESTING the Difference" versus the purchase of other types of life insurance policies.
