Life Insurance Options Single Premium Whole Life

Posted in Life Insurance

February 6th, 2009

Single premium whole life is a term associated with life insurance that only requires one payment throughout the life of the policy. For those who are interested in getting their insurance premiums out of the way, this is a great option.

Some people like to take advantage of the opportunity to pay for their life insurance at once. Others use it as a great way to insure children or grandchildren without the stress of having to keep up monthly payments. The good news is that most people are eligible as long as they are under the age of 80 years old.

Some benefits that single premium whole life policy owners enjoy include:

• Single payment. With this type of policy, you can pay once for an entire life of protection.
• Protection is permanent. Most policies offer you permanent protection; you never have to worry about it decreasing.
• Tax-deferred cash value. Some companies offer single premium whole life policies with the option to borrow against their funds tax-free for any reason. However, when this is done, it is likely that you will be reducing the death benefit amount.

Depending on the life insurance company that you work with, you will be able to take out a policy for as little as $2,000, and as much as $1 million or more. In order to determine whether the single premium whole life insurance policy is right for you, contact your local insurance company, or check products and rates online.