Issue Ages

Whole life insurance policies are available to individuals within a specific age range, known as the issue ages. This range varies by insurer but typically spans from infancy to around 85 years old. The age at which you purchase the policy can affect the premium rates and the overall cost of the insurance.

Face Amounts

The face amount, or death benefit, is the amount of money that will be paid to your beneficiaries upon your death. Whole life insurance policies offer a range of face amounts, allowing you to choose the level of coverage that best meets your financial needs and goals. Higher face amounts generally result in higher premiums.

Underwriting Classes

Underwriting classes are categories used by insurers to determine the risk level of applicants and set premium rates accordingly. These classes are based on factors such as age, health, lifestyle, and medical history. Common underwriting classes include Preferred, Standard, and Substandard, with Preferred applicants receiving the lowest premiums due to their lower risk profile.

Premium Modes

Premium modes refer to the frequency with which you pay your insurance premiums. Whole life insurance policies typically offer several payment options, including monthly, quarterly, semi-annually, and annually. Some policies may also offer single-premium options, where you pay a lump sum upfront. The choice of premium mode can affect the total cost of the policy, with annual payments often being the most cost-effective.

Policy Fee

Whole life insurance policies include a policy fee, which is a regular charge incorporated into your premium payments. This fee covers the administrative costs associated with managing your policy, ensuring that your coverage remains active and well-maintained. Understanding the policy fee helps you grasp the total cost of your insurance and plan your finances accordingly.

Riders

 Riders are additional benefits or options that can be added to your whole life insurance policy for an extra cost. These customizable features allow you to tailor your policy to better meet your specific needs. Common riders include:

• Accelerated Death Benefit Rider: Allows you to access a portion of the death benefit if diagnosed with a terminal illness.
• Waiver of Premium Rider: Waives premium payments if you become disabled and unable to work.
• Term Conversion Rider: Provides the option to convert term life insurance into permanent life insurance without a medical exam.

Adding riders to your policy enhances its flexibility and ensures comprehensive coverage for various life scenarios.

Death Benefit Guarantees

 One of the most significant advantages of whole life insurance is the guaranteed death benefit. This feature ensures that your beneficiaries receive a fixed death benefit payout, provided that premiums are paid. The guaranteed death benefit offers peace of mind, knowing that your loved ones will be financially protected regardless of market conditions or other external factors.

Low-cost Loans

Whole life insurance policies accumulate cash value over time, which policyholders can borrow against. These policy loans come with relatively low interest rates and do not require credit checks, making them an accessible source of funds. Additionally, the repayment terms are flexible, allowing you to manage the loan according to your financial situation. Utilizing low-cost loans from your whole life insurance policy can be a strategic way to address financial needs without disrupting your long-term financial plans.