Whole (ordinary) life
| Cash Value Policies: Whole (Ordinary) Life |
| Description |
Premiums |
Cash Value |
Advantages |
Disadvantages |
Uses |
| Guaranteed at-death proceeds; Guaranteed lifetime benefits |
Level, payable usually to age 95 or 100 |
Guaranteed build-up — participating policies may have build-up beyond amounts guaranteed |
Forced savings element; Fixed premiums; Low-rate loans; Guaranteed cash values; Income tax advantages |
Rates higher than term — Insured may not be able to afford adequate coverage; Investment return usually marginal |
Lifetime need for insurance; Client prefers fixed, guaranteed investment return |
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