Whole Life Insurance
Whole life insurance and Term 100 provide the coverage for life. The difference between Term 100 and whole life insurance is that the Term 100 policy has no cash value .Based on cash value generation and investment pattern ,there are 3 different types of whole life insurance plans:
- Non participating life insurance
- Participating life insurance
- Universal life insurance
NON-PARTICIPATING LIFE INSURANCE: Policyholders of non participating life insurance do not receive dividends, as they are not participants in interest , dividends and capital gains earned by the insurer (Insurance company) on premium paid. Guaranteed cash values and guaranteed level premiums payable for limited period (10 years,15 years and 20 years ) or life, after which time the policy becomes fully paid up. level death benefit or increasing death benefit (Paid up Additions ) options are available. It offers coverage for single, joint first to die or Joint last to die. Available riders are Term riders, Spousal term riders, Child term rider, Accidental death benefit rider and Disability waiver of premium rider. Also available Quit smoking incentive plan ( Lower premiums for the first two years and continue if you really quit smoking ) , Bereavement assistance of $1000 and Access to advance medicals’ expert medical opinion program.
PAR LIFE INSURANCE: Policyholders of par life insurance are entitled to receive dividends as they are participating in profits earned through participating account of the insurer on premium paid. There are guaranteed and non guaranteed cash values. Policy holder is entitled to receive whichever is higher. Non guaranteed cash values are based on dividend scale and usually higher than guaranteed cash values. Guaranteed level premiums for limited period ( 10 years and 20 years ) or life . Available dividend options are Paid up additions, Enhanced insurance, Premium reduction, Dividends on deposit and Cash payment.
UNIVERSAL LIFE INSURANCE: It is more flexible whole life insurance with an investment savings element. There are no guaranteed cash values. Cash values are purely based on the performance of the policy fund. You can choose investment options from a wide variety of investment options to suit your needs. It comes with the opportunity to grow investments tax-deferred. It is ideal if you want to leave a tax free legacy for your loved ones. Most universal life policies contain a flexible premium payment options . Available cost of insurance options are , level ( level to 10 years , level to 20 years and level to age 100) and Yearly Renewable Term ( YRT to age 70, YRT to age 85/15 years, YRT to age 85/20 years, YRT to age 100 ). Flexible death benefit options are level and level + fund.