Whole life insurance in the usa

The original purpose of life insurance was to provide for your family in the case of your death.

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What is the difference between a Guaranteed and Reviewable life insurance policy?: With a “Guaranteed” policy the Life Company guarantees that it will never increase the premium.....
What is Whole of Life?: A Whole of Life Assurance policy has no predetermined termination date and it will continue in force until the policyholder dies or they surrender the policy.
What is Terminal Illness Insurance?: Terminal Illness Insurance pays out if you are diagnosed with an illness from which you are expected to die within 12 months of diagnosis.
Does a UK Life Insurance policy work abroad?: Life Insurance contracts offered by UK Life Companies are legally constructed to apply to people living in the UK and can be sold only to a UK resident at the time the policy is sold.

While this purpose is still the most potent reason to take out a life insurance policy, there are a number of other ways that life insurance can be used to benefit you and your family, even while you are still alive.

The key is in choosing a whole life policy rather than a term life insurance policy. A whole life policy is sometimes called 'permanent life' insurance. It will cover you throughout your life rather than just for a specified amount of time, or a term. There are many ( mortgages ) advantages to a whole life policy over term insurance, and many ways to make a whole life policy affordable.

The cost of a whole life policy is based on the 'face value' of the policy - the death benefit that it will pay if the insured dies. A whole life policy that will pay $100,000 if the person insured dies has a face value of $100,000. As you pay premiums on your life insurance, those ( secured loans ) premiums accumulate into a 'cash value' - the amount of insurance that you've paid into the policy. Most companies base that figure on making payments for 100 years, which is the point when the face value and the cash value will be the same.

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