A Guide To Life Insurance - The Whole-life Policy Continued ....

 

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The Whole-life Policy Continued...

The modern tendency, therefore, is to purchase protection on a shorter-term basis through term assurance and FIB.

In theory, this will prove more expensive overall, but then this also accords with the trend of income since the young man has little to spare, and therefore wants the cheapest protection.

At middle age he has surplus income and may not mind too much if his life insurance is costing him a lot more than it would have if he had taken it out 10 years previously when he could not afford it. Comparison of the table of non-profit whole-life rates with the term rates will show that for the younger man the saving with term assurance is substantial.

Thus, though non-profit whole-life policies are still sold to some young people, they are becoming less and less used in this age group.

The real value of this policy is at and after middle age. Read more at http://www.confused.com/life-insurance/guides/whole-life-cover-a-simple-guide

We have seen that premium rates increased with age and term.

Logically, the rates for, say, a 10-year term assurance and a non-profit whole-life policy must approach closer together as age increases; at the age of 90 the chances of death within the term approach 100%.


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Read On: click here for The Whole-life Policy Examples


Probably the major use of whole-life cover today is in planning for the transfer of assets from one generation to the next, whether these assets are family heirlooms, a farm or a family business.
The impact of taxation today, especially of capital transfer tax, can be disastrous, requiring the payment of large amounts which may force the sale of a family company, or part of a farm, or require the dissolution of a partnership.
Though whole-life protection at the higher ages is not cheap,........ see: click here for The Whole-life Policy Examples


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