What is whole life and universal life insurance policy? Is there any difference?
Total Comments: 4
Posted: Thu Oct 20, 2005 02:38 am Post Subject: difference in life insurance policies
Whole Life policy is the most common form of the permanent insurance policy. It pays a dividend to the insured on the performance of the insurance company. This policy offers a death benefit along with a savings account. For the specific death benefit a certain amount of premium have to pay on a regular basis.
The Universal policy has more flexibility than whole life policy. The death benefit can be increased through passing the medical examination. The cash value account earns money at the market rate of interest. And so there is possibility to earn a higher interest rate. It has the advantage of cash surrender and policy loan options. The policy may get lapsed or even the coverage will end if the premium payment is stopped or reduced and the savings is used up.
Both the policies are good depending on the age, risks, and the types of applications of the policy. Universal policy is generally good for the younger people whereas the whole life policy will suit to the older peoples as they have to make plan according to the expenditures.
Posted: Tue Aug 21, 2007 03:18 am Post Subject: life insurance
If my husband is a healthy 31 year old, non smoker. What type of life insurance should he get and how much? We are a family of 4.
Posted: Tue Aug 21, 2007 12:05 pm Post Subject: why don't you shift?
Hi, I've recently seen a tendency to buy term life insurance than permanent life insurance policies. This is because the benefits run for a shorter period of time & hence it costs you a lot lesser in terms of premiums.
Hence my opinion is that buying the term life policy, you would definitely get entitled to receive more benefits than the getting the permanent policy.
With your permanent policy even though your benefits might run for a longer period of time but if the benefits are not enough to cover your needs then I personally feel its not worthy of paying the premiums for it.
Thats perfectly the reason more and more families are shifting towards term policies!
Thanks, Fatman
Posted: Fri Sep 07, 2007 03:26 am Post Subject:
The type of policy you choose should depend on your financial need and goals. Many people are buying term to fill perminate needs because its cheaper. If your goal is to insure that you have enough money to raise the kids than go with term. If you want to insure that you will be taken care of than you should consider a permanent policy. You may not need as muc h after the kids are grown so you might consider a permanent policy with a term rider.
When it comes to whole life vs. universal, I personally prefer whole life. Unless you plan to over fund the UL.
Posted: Thu Oct 20, 2005 02:38 am Post Subject: difference in life insurance policies
Whole Life policy is the most common form of the permanent insurance policy. It pays a dividend to the insured on the performance of the insurance company. This policy offers a death benefit along with a savings account. For the specific death benefit a certain amount of premium have to pay on a regular basis.
The Universal policy has more flexibility than whole life policy. The death benefit can be increased through passing the medical examination. The cash value account earns money at the market rate of interest. And so there is possibility to earn a higher interest rate. It has the advantage of cash surrender and policy loan options. The policy may get lapsed or even the coverage will end if the premium payment is stopped or reduced and the savings is used up.
Both the policies are good depending on the age, risks, and the types of applications of the policy. Universal policy is generally good for the younger people whereas the whole life policy will suit to the older peoples as they have to make plan according to the expenditures.
Posted: Tue Aug 21, 2007 03:18 am Post Subject: life insurance
If my husband is a healthy 31 year old, non smoker. What type of life insurance should he get and how much? We are a family of 4.
Posted: Tue Aug 21, 2007 12:05 pm Post Subject: why don't you shift?
Hi, I've recently seen a tendency to buy term life insurance than permanent life insurance policies. This is because the benefits run for a shorter period of time & hence it costs you a lot lesser in terms of premiums.
Hence my opinion is that buying the term life policy, you would definitely get entitled to receive more benefits than the getting the permanent policy.
With your permanent policy even though your benefits might run for a longer period of time but if the benefits are not enough to cover your needs then I personally feel its not worthy of paying the premiums for it.
Thats perfectly the reason more and more families are shifting towards term policies!
Thanks, Fatman
Posted: Fri Sep 07, 2007 03:26 am Post Subject:
The type of policy you choose should depend on your financial need and goals. Many people are buying term to fill perminate needs because its cheaper. If your goal is to insure that you have enough money to raise the kids than go with term. If you want to insure that you will be taken care of than you should consider a permanent policy. You may not need as muc h after the kids are grown so you might consider a permanent policy with a term rider.
When it comes to whole life vs. universal, I personally prefer whole life. Unless you plan to over fund the UL.
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