In insurance, generally, the insurance policy consists of a contractual agreement between the insured and the insurance provider, which describe the financial obligations that the insurance provider is legally obligated to pay in the event that the insured party claims loss due to an accident or other covered events. In return for an initial down payment, also called the premium, the insurance provider promises to cover eventual loss incurred by the insured party as a result of perils listed under the insurance policy coverage. These claims are paid by the insured through monthly premiums paid directly to the insurance provider. Also included in the contract is an insurance bond, which serves as a guarantee that the insurance policy will be paid in the event of a claim.
Whole Life Insurance policies are usually the most expensive among all insurance policies available. The coverage offered varies by type of Whole Life Insurance policy. Most Whole Life Insurance policies provide coverage for your dependents after you die, as long as at least one of them is not a dependent. The coverage provided usually lasts until your death or for the amount of time you have owned the policy, whichever is shorter. Also, if you convert a variable Life Insurance policy to a Whole Life Insurance policy, your coverage is extended to your spouse, children and grandchildren for the same period of time your family is covered under the Life Insurance policy.
Variable Life Insurance policies, as their name implies, allow you to alter the death benefit and premium amount over time, making these types of insurance policies very flexible in their application. Usually, you can keep your current coverage amount or increase or decrease your death benefit. Also, if you become unemployed, you can cancel your variable life insurance policy and begin using your standard car insurance policy immediately. You can get more information about Cabinet Installer Insurance
As with all types of insurance policies, the cost of Whole Life insurance policies is largely dependent on the amount of coverage you choose. Typically, you can expect to pay more money for a higher premium and a lower death benefit, but that’s not always the case. For example, if you do not use your vehicle regularly, you might be able to purchase a less expensive policy limit. You can also find cheaper premiums by choosing a higher deductible. If you meet the minimum requirements of a lower deductible and higher maximum amount, you can expect to pay less money for a Whole Life insurance policy.
Another type of Whole Life Insurance policy, called decreasing term life, has a limited cash value and offers limited access to death benefits. Decreasing term life insurance policies are less expensive than other types of whole insurance policies because the death benefit is limited. Although you will pay more money for a decreasing term life insurance policy, you will probably receive greater death benefit than with some other types of policies. This makes this type of policy less financially protective and is therefore less attractive to many consumers.
The third type of a Whole Life Insurance policy–the Universal Life or Variable Universal Life–gives you more flexibility and less costs. These policies are usually less expensive than whole life and variable universal life policies. Because they feature a cash value and build cash value over time, they are often considered the best choice for some consumers. Most universal life policies allow the consumer to take advantage of a “buy down” feature. The downside to this feature is that the consumer is required to use a percentage of the cash value instead of carrying cash value at the end of the contract. This option can help you avoid the costs and fees associated with carrying a balance on your insurance policy.