What is the permanent whole life policy?
Answer:
Here is a breakdown explaining the whole (permanent) life insurance policy:
Permanent Life Insurance provides lifetime protection for the person insured, as long as the premiums are paid on time.
Most permanent policies build cash value within the policy, while also providing life insurance coverage.
The savings part of the policy causes the premiums to be higher than those paid for term life insurance.
The cash value that builds in the whole life insurance policy can be borrowed or distributed at some time in the future.
Permanent Life Insurance - Features:
Permanent insurance protection.
More expensive than term insurance.
Builds cash value inside the policy.
Loans are available from the policy.
Level premiums are available.
There are three types of permanent life insurance: whole life, variable life, and universal life.
Whole life insurance provides lifetime protection for the insured, and you pay a predetermined premium. The cash value within the policy usually has a guaranteed interest rate. The death benefit is a fixed amount determined when you purchase the policy. Whole life insurance is the most expensive type of life insurance.
You should be able to access the cash value that has built up within the policy. Unless, the cash values have been used to pay part of the premium on the policy. Check the illustration page within your policy to review what values were expected to grow within the policy.
Also, you can call the life insurance company direct and explain your situation. You can ask them to send you a written explanation of the values within your policy, if any, and when you will be able to take a loan out for the values that have built up within your policy. Usually, you can take a loan of the cash values within the policy. You would have to pay yourself back the money - it goes back into the policy. I believe there is a low rate of interest you pay also - that goes back into the policy as well - I believe.
I hope that helps! Take care and best of luck!
If you are receiving dividends, you have a participating whole life policy and it does build cash value. Your policy should have a loan provision in it, but it is possible that at the end of 10 years, you simply did not have enough cash value to borrow. You should be able to look at your policy to find the cash value table or take it to any insurance agent you trust and they can look at it and tell you.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: