What Kind Of Premium Does A Whole Life Policy Have at Life

What Kind Of Premium Does A Whole Life Policy Have. First, a maximum guaranteed rate and second, a lower rate. A.) cash value that will ultimately replace the death benefit b.) nonforfeiture benefit options c.) premiums that remain fixed for the life of the policy d.) partial withdrawal features beyond a surrender charge period

Also known as whole life insurance, a straight life policy has a cash value account that grows in size as you contribute premiums to the plan. This is a kind of whole life policy that has two premium rates. The carrier charges the lower premium rate while the policy is invested in for the first time.

Straight life insurance is a policy that provides lifelong life insurance coverage with continuous level premium payments. Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract. This is in contrast to term life insurance, which only guarantees that there will be a payout should you die within the specified term of the policy. Whole life policies are designed so that at maturity—age 121 for most modern policies—the cash value will equal the policy’s death benefit, which, in this example, is $1,000,000.