you should look for when shopping for Whole Life Insurance
Whole Life insurance
should give a level death benefit to around age
100, which should be guaranteed as long as premiums are paid when
due. In addition, the total death benefit may be increased by policy
dividends used to purchase paid-up additional life insurance or that
have been left to accumulate interest.
Options for Death Proceeds
The beneficiary has many options for collecting death benefit
proceeds. The policy owner may nominate the method of payment during
the primary insured's life, or if no such nomination has been made,
the beneficiary may make the nomination at the time of death.
A bearing- interest account for proceeds earning a competitive
interest rate that allows flexibility in accessing the funds.
A single payment giving greater ability to meet immediate financial
Ongoing payments providing an income which may be guaranteed to last
for the beneficiary's lifetime.
For larger flexibility, the complete death benefit may be divided
Increase Value of Policy
Some Whole Life policies are participating, meaning that if
dividends are declared by the Board of Directors, any dividends paid
will be credited to the policy on its anniversary. Dividends, which
are not guaranteed in any policy year, may increase the policy’s
cash surrender value and the death benefit, depending on the
dividend option selected.
You Should Look Out For...
Used to purchase paid-up additional life insurance. Paid-up
additions develop extra cash and loan values and are also able to
earn dividends if declared in the future.
If declared, Dividends are left with the Company to accumulate with
interest at a rate set by your life insurance company. This option
can increase the total death benefit as well as the complete cash
If declared, Dividends are used to lower the premium due.
If declared, Dividends, are usually paid to the policy owner by
check from the life insurance company.
Whole Life insurance should provide level premium payments which are
guaranteed; premiums will never increase regardless of changes in
age or health.