What is whole life insurance?
Terry
Houston, TX.
Terry,
Whole life insurance is a type of life insurance. One of the benefits and options of whole life insurance is the cash value.
Cash value isn’t the same as face value. Face value is the amount of money beneficiary will receive in the event of your death. Cash value is the amount of money that you can access while you’re still alive.
Why would you want to access money from your whole life insurance policy while you’re still alive? And what does this have to do with your whole life insurance rate?
There are several reasons for wanting to access money from your whole life insurance policy while you’re still alive. You may want to take a loan against it to pay for an emergency, or, you may just want to cash it in before you die to enjoy the savings.
Plus, if there’s enough money accumulated in your whole life insurance policy cash value, you can use it to pay toward your whole life insurance rate; this is especially helpful should you find yourself or your family experiencing financial burden.
Great Question.