If you want to buy whole life insurance, you are going to be asked by
the insurance company to undergo a medical exam. The insurer needs to
know whether you are suffering of any medical condition because this
might affect your insurance price. There are medical conditions that
might not allow you to buy whole life insurance, like AIDS, heart
disease, diabetes or cancer.
Whole life insurance is a type of
life insurance that is in effect for as long as you are going to live or
until your 100th birthday. It is called permanent life
insurance because it doesn't expire as long as you keep paying the
premiums. If you get whole life insurance, you are supposed to pay
premiums your entire life. There are also policies that can be paid in
full when or until you reach a certain age. These are not standard
policies and they also cost more than other ones.
The premium that you have to pay for whole life insurance is higher
than the amount needed for the actual costs of your insurance. The
excess is directed into a savings account. The point of this is to build
cash value and to entitle you to use it as you please. You can lend
money from the cash accumulation and as long as you put them back this
won't affect the death benefit. You will also earn interest for this
money.
Whole life insurance policies have lost their popularity lately. This
is because term life insurance is cheaper and many people decide to go
for this one and to invest the money they save on their own. If you
don't know for sure which type of life insurance suits you most, discuss
your situation with an insurance agent and ask some free quotes so you
can make a general idea on the costs.
