For more than 40 years, Donald Lusan has been known for his extensive knowledge of the life insurance business.  He has represented some of the largest and best life insurance companies in the United States and Canada.  Insurance professionals as well as consumers are able to access his vast knowledge and expertise with ease by taking a little time to visit his website…

A whole life insurance cover explanation should be required reading for anyone interested in purchasing a life insurance policy. Recently, whole life insurance has fallen out of favor.  People tend to buy term life insurance because at the onset it is cheaper. While a term life insurance policy can accommodate the insurance needs of most people, a whole life insurance policy is definitely worth looking at.

The death benefit of a whole life insurance policy is guaranteed to remain level for the life of the policy. That type of guarantee cannot be sneezed at. The premiums for a whole life insurance policy are guaranteed to never increase in most cases.  As long as the premium payments are made in a time manner, the policy can never be cancelled by the insurance company.

A whole life insurance policy has cash values that are available to policy holders, if they should need it.  When the need arises, the policy holder can surrender their policy and get the cash that the policy has accumulated, or they can withdraw cash in the form of a loan and still keep the policy. The cash value accumulated by a whole life insurance policy is tax-deferred, which means that while the cash is accumulating interest the policy holder pays no income taxes on the interest.  Taxes are paid only when the policy holder makes a withdrawal of all or part of the cash value.  Loans are also made on a tax free basis.

As most whole life insurance policies are participating policies the policy holder earns dividends on the life insurance policy. Each year the life insurance company declares a dividend, a portion of the proceeds goes to the policy owners, who withdraw their dividends in cash, allow it to be rolled over into the policy so that it can accumulate interest, or purchase paid up additions to the life cover policy. Paid up additions are single premium whole life insurance policies.

Policy holders can add a waiver of premium rider to your policy, which states, that if they should become disabled the life insurance company will pay the premiums on their behalf. There is no limit to the disability term.  The premium payments will be paid regardless of the length of the disability - It does not matter how long you are disabled, they will pay the premiums even if it is for the rest of policy holder’s life.

Policy holders can also add an accidental death rider to a whole life insurance policy, as well as which states that if they should die in an accident the insurance company will pay a death benefit equal to twice the initial face value.

There are a many other benefits to having a whole life insurance policy. Click the link below for complete details.