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The Whole Life Policy
About the Whole Life Policy
The whole life insurance policy is a special contract arranged between you (the insured) and an insurance company of your choosing. The specifics of the whole life policy will include information regarding the premiums to be paid, the amount of the death benefits paid as well as the how dividends on the investments will be paid.
Whole Life Policy Premium Schedule
The scheduled premiums for a whole life policy are preset and will never vary or waver. This means that the amount you pay to keep your life insurance current will always remain the same. The only variations in payment allowed will be if dividends are applied to reduce your payments (see below).
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Death Benefits of a Whole Life Policy
When setting up your whole life policy, you and your insurance counselor will try to determine the proper benefit amount for the policy. In the event of your passing, the insurance company will pay this amount to your designated beneficiary. This may (or may not) be assigned to one person or a group of people, as you see fit.
Dividends of a Whole Life Policy
Also arranged at the onset of your whole life insurance policy, dividends will be earned by the investment portion of your premium. These dividends can be paid back into the savings vehicle or used to reduce the premiums of your whole life policy. The choice is yours, of course, but we must recommend discussing the options with a life insurance counselor before making your final decision on your whole life policy.
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