What is whole life insurance ?

What is whole life insurance ?

Whole life insurance is a life insurance policy that gives you peace of mind for the rest of your life. Even if you cancel the policy in the middle, the premiums you paid will be returned, so it is good not to waste your money.

Recently, it seems that there are products with higher savings characteristics than ordinary whole life insurance.

In today's era of 100 -year lifespans, even those who are concerned about money and security in their old age will be able to understand the tips for security and savings by understanding the nature of whole life insurance .

What is whole life insurance

There are various types of life insurance to prepare for the eventuality. Whole life insurance is one type of life insurance that lasts for the rest of your life.

Whole life insurance provides a death benefit if the insured dies during the policy period, and a disability benefit if the insured becomes severely disabled.

In addition, if the policy is canceled in the middle of the contract period, a surrender value will be paid.

Of the insurance premiums paid, the amount of the accumulated portion after deducting necessary expenses, etc. will be refunded, and this amount will increase as the insurance period lengthens.

With whole life insurance, if you cancel the policy early soon after you enroll, the principal will be lost because the accumulated portion is small.

The return rate is the ratio of the surrender value that can be received to the total amount of premiums paid, and the break-even point is the time when the premium payment is completed.

In addition to the whole life insurance premium payment period, there are short-term premium payment periods such as 20 years and up to 60 years of age.

Main Whole Life Insurance Products

Whole life insurance includes the following products in addition to regular whole life insurance that provides protection against death and severe disability for the rest of your life.

Let's take a look at each.

Whole life insurance with low cash surrender value

Whole life insurance with low cash surrender value is insurance that has lower insurance premiums by setting the cash surrender value at a fixed amount during the premium payment period.

With normal whole life insurance, the surrender value increases as the insurance period expire, so compared to term insurance, which is the same as death insurance, the premium will inevitably be higher because it is not a non-repayable type.

By the way, the amount of surrender value of whole life insurance with low surrender value will be the same as that of normal whole life insurance after the premium payment is completed.