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What is whole life insurance?

Understand well what that whole life insurance

Have you ever heard of whole life insurance? Yup, it is a term of whole life insurance.

Whole Life Insurance Example of This Type

Whole life insurance is a type of insurance that provides protection to the participants of a lifetime or a maximum of up to 100 years old. Of course this could be the consideration of whether or not it is necessary to take the whole life insurance. This is because the average age of someone quite rarely can reach up to 100 years.

Any way, we certainly never know until when will survive, isn't it? Because it is beyond the control of humans. Therefore, there is no harm in preparing for all possibilities in the future.

The core of this whole life insurance is to provide protection to the heirs of the participants at the time of this participant died. So families left behind will not experience distress and inconvenience: financial problems later in life.

This is important, especially when there are still family member participants who require a fee. This type of insurance are certainly useful enough to follow.

Whole life insurance and is judged more appropriate followed by a participant who was about 40 years old and above. Why? Because this insurance focuses provide protection in the event of the risk of death and the insured wants to leave a legacy to his heir.

In addition, this insurance can serve as Educational funds, pension funds, and others, from the accumulated cash value and specified as destination in initially at the time of filing this whole life insurance.

Read also: Public Insurance vs. life insurance, what's the difference?

An Example Of This Type Of Whole Life Insurance Policy

Select the life insurance policy according to the wishes and needs of

Whole life insurance has several examples of this type of policy, such as:

Polis direct souls (Straight life policy)
In this policy, fixed premiums are paid until the insured dies or up to the age of 100 years. So the cash value will be established for ongoing policy or equivalent to the amount of the basic sum assured when the participants reached the age of 100 years. If the participant is still living up to the age limit, the value of the insured will be paid and insurance protection automatically stops.

Whole life insurance policy payments limited (Limited-payment whole life insurance)
This type of policy is intended for people who want to have lifetime protection, but don't want to pay a premium for a lifetime. In other words, the premium can be paid in a period of time or until a specified age of participants. Therefore, any insurance protection persists for life. So the premium payment is done in due time.

The policy does not participate
In this policy, if the insured dies, the beneficiary will receive the basic sum assured with a limited amount. There is no element of bonuses from the insurance company. Only as paid on the premium only.

Polis participation
This policy allows insurance companies to share profits with the participants, with a note there is an additional premium. So that participants will receive an extra bonus every year. The number of the magnitude of the bonuses cannot be guaranteed with certainty, because it depends on the insurance company profits.

After you know the sense of the whole life insurance, next is the advantages and disadvantages of this insurance. What's it?