How Does Life Insurance Work? A Quick Explanation

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Whole Life Insurance Explained – How Whole Life Insurance Works

By Rick Stevens

Several people have asked me to explain how Whole Life Insurance works recently, so I decided to do it in an article so everyone could read it and I could answer everyone’s question at the same time. Also, you can always refer back to this article if you ever have any questions. Fair enough? Then let’s get started!

This is a type of policy that is meant to provide life insurance protection for a person’s entire life or until they reach the age of 100 years, whichever comes first. This is a permanent type of policy, which means that you’ll be paying on it for as long as you live,

unless you happen to get a specific policy where you can pay it off early, such as a “Paid At 60” policy. These types of policies charge much higher premiums, however you’ll only pay on them for a specified period of time and be finished. Anyway, I don’t want to get too far off track.

A Whole Life Insurance policy requires that you take a physical exam, in most cases. Before a company is going to provide insurance coverage they’re going to want to

know if there are any physical ailments that they should be aware of first. Some of these may disqualify you from being covered, such as AIDS, Cancer, Heart Disease, Diabetes and more.

When you pay into a Whole Life Insurance policy, a portion of your premium payments go toward buying insurance, while the rest goes into a savings account that accrues cash value. This cash value will accumulate and begin to draw interest over time. This will actually build into an asset that you can use as collateral or borrow from. You must repay the loan in order for the entire face value of the policy to be paid out in the event of your death.

Whole Life Insurance isn’t as popular as it used to be. Many people are now choosing to buy Term Life instead because they’re finding that they don’t need to be covered for their whole life, because it’s less expensive and because they prefer to invest their money elsewhere. You should get several free life insurance quotes and then talk to an agent to determine which plan is the best choice for you and your family.

You Can Learn More About Whole Life Insurance Options And Even Get Free Life Insurance Quotes Right Now At http://TheLifeInsuranceGuys.com. Rick Stevens Is A Former Life And Health Agent That Now Works Helping Others By Providing Free Information. Visit His Website Today!

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1 COMMENT

  1. HI
    I’M NEW AT SELLING INSURANCE, I’M WANTING TO LEARN WHEN AND TO WHO SHOULD I OFFER TERM AND WHOLE LIFE
    IF YOU COULD PLEASE EXPLAIN IT TO ME IN REGULAR LANGUAGE

    THANK YOU
    AARON MILAN

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