Limited Pay Whole Life PolicyThere are 3 basic types of whole life and they are continuous premium whole life policy, single premium and limited payment which we will go over here. If you’re just starting out, please check out the advantages of whole of life insurance and what it can do for you, for more general information on whole of life. It’s important for you to note that all 3 of the policies mentioned above are basically the same, it’s just how you pay your premiums that makes them different. About Limited PayWhen you purchase limited payment, you still have a level annual premium with a guaranteed death benefit. A big advantage to this policy is that it is adjusted so your premiums will actually be paid long before you reach age 100. So let’s say you purchase a policy when you’re 30 and you know that after 20 years you want to be done paying premiums. This is where a limited pay policy can help. Some similar versions of this are “20 pay” and “life paid-up at 65”. This basically means that you will be finished paying your premiums in x amount of time or by the time you reach a certain age. With “20 pay,” your policy premiums will be paid up within 20 years and for “life paid-up 65” they will be paid for by age 65. This would be especially helpful since by age 65 you would be retiring and might not want to keep paying the premiums after this. Remember, since the time frame to pay your premiums is condensed, you can also expect your annual premium to be higher than something like continuous premium. This is because you’re trying to pay off as much as possible within a smaller period of time. Limited pay policies can be beneficial when you know you’d like to be finished paying your premiums after a certain amount of time, such as by the time you reach retirement.
Return from Limited Whole life to Permanent Life Insurance
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