TEN STAR Whole Life Insurance

What is it?

The premiums are level for life and usually guaranteed.  The amount of the life insurance is level for life.

The actual cost of life insurance for the life insurance company increases each year as you age.  At age 30 years, less people per 10,000 will die, compared to age 65 years.

With level premium whole-life insurance, you pay more for the cost of the life insurance in the early years and less than the cost of the life insurance in the later years.  The excess premium paid in the early years builds up funds, which earn interest.  At the older ages, the interest on these funds, pay for the increasing cost of the insurance above the cost of your premium.  If your whole-life policy is paid up at age 65, no more premiums are needed, as the interest will cover the future cost of insurance.  You do not pay income tax on this interest.

Features and benefits

There are many features with additional benefits.  These policies are mainly of two types; non- participating guaranteed whole-life and participating.  Participating whole-life provides annual dividends (a refund premium which is therefore non-taxable).  There can be five or six dividend options.  The most popular option is to purchase a single premium whole-life policy addition (paid-up additions option).  There is no medical evidence required for this additional coverage.

There are many other benefits available which can be added to the policy, they are usually called riders.

You really need a licensed independent agent to advise you, as premium rates between life insurance companies vary a great deal.

Term-to-100 life insurance is really low cost non participating whole-life insurance.  The life insurance company discounts the premium because there is no cash value in the policy, unlike whole-life which has cash value.

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