General Insurance

Why You Should Use a Whole Life Insurance Value Chart Before Buying a Plan

Whole Life Insurance Value Chart

This article was Last Updated on March 2, 2022 by Olushola Awode

A whole life Insurance Value Chart is essentially a table or a graph that shows the value of your investment in a Whole Life Insurance. Whole Life Insurance, which is also known as permanent life insurance, is a form of insurance that covers the remainder of someone’s life and pays a dividend after their death to beneficiaries, usually family members or friends. If and when a policyholder decides to quit the contract and end the insurance, they usually get a cash value or a certain amount of money that recovers the investment they have made in the insurance policy.

Whole Life Insurance Value ChartGiven that people take Life Insurance policies at different stages in their life, with different medical conditions, the value of life insurance policies depends on the age and health of the person taking the insurance. Younger and healthier people get more value for their insurance than old people or those with severe medical conditions. That is generally how insurance works: the more likely you are to lose what you’re insuring, the higher the cost of your insurance, and thus the lower the value.

Most insurance companies depend on the whole life insurance value chart to determine the cost of insurance from the age and health of the individual. These value charts also show other details, such as the premium or the cash value of a Whole Life Insurance policy depending on the age and medical conditions. You should examine whole life insurance value chart before signing up for an insurance policy.

There are other aspects of Whole life insurance that one needs to research before signing up for a policy. There is taxation, which affects the value of insurance. There are also death benefits and methods of payment. It is important to use the whole life insurance value chart to find out your premiums and dividends of an insurance plan, but it is also important to know every single applicable clause in the contract. We have researched and compiled everything you would need to know about the Whole Life Insurance policy, and you can read more below to find out.

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What is Whole Life Insurance

If you have seen in a movie – or observed in real life – a case where a person gets a huge sum of money after a close loved one or a family member dies, then you have probably seen an example of a Whole Life Insurance.

Life Insurance as a practice began as a way for people to be sure that their burial expenses could be covered by their family after they die. Today, Life Insurance has transformed into an investment scheme that many people use not just to save wealth for their loved ones after they die but to secure huge financial assets they can turn to if they run into problems while still alive. But, still, Life Insurance, and especially Whole Life Insurance, is a type of insurance done with the death of the insured person in view.

Whole Life Insurance Value ChartLife Insurance

Life insurance is a category of insurance that exists as a contract between an insurance policyholder and an insurer or assurer, where the insurer undertakes to pay a specific beneficiary a sum of money upon the death of an insured person (often the policyholder). Hence, Life Insurance as a policy involves at least three parties; the insurer or the Insurance company, the policyholder whose life is being insured, and a beneficiary to whom the payment is made after the death of the insured.

Other incidences like terminal sickness/critical illness can also trigger payment, depending on the contract. The policyholder typically pays a premium, and this could be done either in regular installments or as one lump sum. Funeral expenses are usually included as part of the benefits to the policyholder. Life insurance is also known as life assurance, especially among the Commonwealth of Nations.

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Whole Life Insurance

This is sometimes called “straight life insurance” or “ordinary life insurance.” It is a life insurance policy that is guaranteed to remain viable throughout the entire lifetime of the insured person, provided required premiums are paid up to the maturity date. It is a type of life insurance policy that appears as a contract between the insured and the insurer that states that if the contract terms are followed, the insurer would pay the policy’s death benefit to the policy’s beneficiaries when the insured dies.

Whole Life Insurance differs specifically from term life insurance. Whole Life Insurance is also referred to as Permanent Life Insurance, while term Life Insurance is limited to a period of time. The premiums for Whole Life Insurance are typically much higher than those of term life insurance Because whole life insurance plans are guaranteed to continue in existence as long as the appropriate payments are paid, while the premium for Term Life Insurance is fixed only for a limited term. The premiums for Whole Life are fixed, based on the age of the insured at the time it was issued, and usually do not increase with age. Except for limited pay plans, which might be paid up in 10 years, 20 years, or at the age of 65, the insured party normally pays premiums until death. Whole life insurance is a type of life insurance that has a cash value, like universal life insurance, variable life insurance, and endowment plans.

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Varieties of Whole Life Insurance

There are many varieties of Whole Life Insurance, though the offer made by any insurer may vary significantly. The categories that truly matter, especially with respect to age, are Graded Whole Life Insurance and Simplified Issue Whole Life Insurance

  1. Graded Whole Life Insurance

A graded whole life insurance policy is one that pays a lower amount if the insured person dies within the first few years after purchasing the insurance policy. It pays less amount if the insured person dies early in the term of coverage. It only rises to the face value of the policy after the insured person has lived for several years.

  1. Simplified Whole Life Insurance

This is a type of whole life insurance that lasts your entire life and retains the same face value. It is designed for people 60 and older who have health problems that make them unable to get other types of whole life insurance. Unlike other forms of Life Insurance, the insured person may not have to go through a medical exam. Because the health evaluation is not as thorough, insurers set a higher premium with less coverage.

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Conclusion: Whole Life Insurance Value Chart

We hope you found this post on the Whole Life Insurance Value Chart educative and informative. Do visit our site for up-to-date information on insurance matters.


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