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PTP Insurance
Agents of Naperville, IL, an independent insurance agency
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What is Whole Life Insurance?
 Whole
Life Insurance is a life insurance policy that remains in force,
provided the premiums due are paid, for the insured's whole life.
Usually premiums must be paid every year into the policy. Many
insurance companies enable the policy owner to pay monthly or
quarterly by financing the annual premium. While whole life insurance
requires that the policy owner pay premiums for the life of the
policy, there are variations in terms that enable the policy
be "paid up". Some of the various types of whole life
insurance policies include:
- Non-Participating Whole
Life Insurance
All values related to the insurance policy including the premium,
surrender value and death benefit are determined up front and
cannot be changed. The insurance company's actuary establishes
these values, and the insurance company assumes all the risk.
This means if the premium amount established is underestimated,
the insurance company absorbs the additional cost. However, if
the actuaries' estimates are high, the insurance company retains
the excess. Regulation and competition usually keeps estimate
in line.
- Indeterminate Premium Whole
Life Insurance
This is a variation of non-participating whole life insurance.
The premium may vary year to year, but it won't exceed a maximum
amount which is guaranteed in the policy.
- Participating Whole Life
Insurance
The insurance company shares excess profits with the policyholder
in the form of dividends regarding a participating whole life
insurance policy. The amount of each annual dividend is dependant
on the success of the company's performance.
- Limited Pay Whole Life Insurance
Similar to a participating policy, but the premiums are only
due for a fixed number of years, such as 20. The policy remains
in force for the life of the insured.
- Single Premium Whole Life
Insurance
As its name implies, there is a single large payment up front.
This form of limited pay policy typically has early cash in fees
to discourage the policyholder from cashing it in too soon.
- Economic Whole Life Insurance
This is a blend of participating whole life insurance and term
life insurance. Some of the dividends are used to purchase additional
term life insurance. If one's objective is to build a higher
death benefit without paying additional premiums, this is something
to consider. One should keep in mind the death benefit may decrease
in those years where the actual dividends are below projections.
- Interest Sensitive Whole
Life Insurance
These policies are a combination of universal life and whole
life insurance. The death benefit remains constant while the
premium payment might change.
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People
to People Insurance Services Inc. - 1240 Iroquois, Naperville, IL, DuPage County - Serving Chicagoland (630) 355-2355 |
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Naperville Illinois personal and commercial independent insurance agents, PTP Insurance Agency, serves clients throughout
the metropolitan Chicagoland area which includes Cook County, DuPage County, Kane County, Kendall County and Will County;
including, but not limited to, Naperville, Bolingbrook, Plainfield, Aurora, Batavia, Barrington, Berwyn,
Bedford Park, Bloomingdale, Brookfield, Burbank, Burr Ridge, Carol Stream, Chicago, Clarendon Hills, Countryside,
Darien, Downers Grove, Elgin, Elmhurst Glen Ellyn, Glendale Heights, Hickory Hills, Hoffman Estates, LaGrange,
LaGrange Park, Lemont, Lisle, Lockport, Lombard, Lyons, Mokena, Montgomery, Oak Brook, Oswego, Romeoville,
St Charles, Schaumburg, Shorewood, Sycamore, Warrenville,West Chicago, Westmont, Woodridge and Yorkville.
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