Life Insurance 03. Whole Life Insurance

Question 1

1. . What is WHOLE LIFE INSURANCE?

Answer 1

It covers you for as long as you live if your premiums are paid. You generally pay the same amounts in premiums for a long as you live.

Question 2

2. When you first take out the (Whole Life) policy, the premiums are (how much?):

Answer 2

they can be several times higher than you would pay initially for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term policy until your later years.

Question 3

3. Some Whole Life policies let you pay premiums for a shorter period such as:

Answer 3

20 years, or until age 65. Premiums for these policies are higher since the premium payments are made for a shorter period.

Question 4

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Answer 4

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