Whole life insurance

Topics:
Insurance
Tags:
Business Operations,
Corporate Insurance,
Dividend,
Finance,
Financial Planning,
Insurance,
Life Insurance
Source:
Business Week Online

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Overview: "Whole life insurance is also called ordinary or straight life insurance. With whole life insurance, you pay a level premium over the life of the policy. The amount of your death benefit is also fixed. Similar to other forms of permanent life insurance, whole life insurance builds up cash value in a tax-deferred accumulation fund. Whole life insurance policies pay dividends to policyholders if premiums are excessive. A dividend from a life insurance company is a return of premiums. Unlike a dividend earned on a stock or mutual fund, it is not a company's distribution of profits. Dividends can be used to pay future premiums."

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Format: HTML | Date: Sep 2003 | Pages: 1

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