Whole life is a permanent policy that provides a guaranteed level premium, a guaranteed death benefit
and a guaranteed cash value. If the primary insured dies while coverage is in force, their beneficiaries
receive the policy face value minus any loan(s) or loan interest due. Coverage ends on the policy
anniversary after the insured attains age 121. At that time, the policy matures and the account value,
less any outstanding loan(s) and loan interest, is paid to the policyholder.
Whole life insurance has a higher cost than Term Insurance because if you continue to pay the premium,
the policy will pay out, where a small percentage of Term Insurance actually pays out. Whole life is
has been thought of as final expense insurance because usually the "Face Amount" is usually much smaller
on a Whole Life Policy compared to a Term Policy.
There are some important features and additional coverages that may be important:
Accelerated Death Benefit - If the insured is terminally ill and life expectancy is 12 months or less,
the rider will pay up to 50 percent of the death benefit of the policy with a maximum aggregate
payout of $250,000 per insured. This option is automatically included.
Waiver of Premium Should the primary insured become disabled, this rider will keep the insurance in
force. This rider covers the base policy and any riders. It may be added at ages 15 through 55.
Children's Term Insurance Rider - This rider provides term insurance in units (1 unit equals $1,000
of coverage) on each covered child with a maximum coverage of 10 units per policy.
Guaranteed Insurability Option Rider Allows the insured to purchase insurance on up to six option
dates without evidence of insurability. The option dates are the policy anniversaries on which
the insured's age is 25, 28, 31, 34, 37, and 40. Issue ages 0 to 37.
Personal