Single Premium Whole Life Policy(SPWL)A single premium whole life policy is designed so that you only pay one premium in one lump sum. This policy as well as others can be used as a very effective tool in estate planning, learn more about the advantages of whole life insurance. With this type of policy you don’t have any other premiums after the one time payment, which some people might like. There are 2 other basic types of whole life which offer different ways to pay your premiums and they are continuous premium whole life and limited pay whole life. Learn more about them to see which is right for you. Just a little tip, the least expensive is continuous premium because you’ll pay premiums for your entire life. Who is SPWL for?You may be wondering who the heck this kind of policy will work for, after all if you are only paying one lump sum payment then it has to be a little pricey, doesn’t it? The answer to that is YES. You need to have the cash to pay the premium in one shot. But remember, you’ll only make one payment. A policy like this might be for someone who does not want to be bothered with payments other than the first one. So if you have the cash to spare it might be worth looking into. How SPWL worksThe rate of return on a single premium whole life policy will usually be guaranteed from one to five years and is later adjusted either by your insurer or using a formula. One benefit of the SPWL that you might like is that it will form immediate cash value because of your payment size being so large. Learn more about cash value life insurance and how it works. Most companies usually have a minimum premium that you must pay, usually in the $5,000 or higher range. Also, to keep savvy investors from taking advantage this policy is subject to surrender charges if the policyholder cashes it out too soon. The time frame for surrender charges are usually in force for 7-10 years.
Return from Single Premium Whole Life Policy to Permanent Life Insurance
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