History of Whole Life Insurance

By Compuquotes Team on April 19th, 2008

It is always important to look at how things came to be, so that you can make a good decision about which of the things are going to be right for you and which of them might not be the best for you. When you are looking at whole life insurance, it is important to think about where it came from so that you can know where it will be going in the future.

Whole life insurance is a relatively new form of life insurance that was developed from other forms of life insurance. Life insurance was usually just term insurance, which was slightly different. With the term insurance, you would buy a policy that would last for a certain amount of time. You would pay for the policy either in a lump sum or in installments. Then, you would be covered for that amount of time if something happened to you. However, when the term was up, either you would have to continue to purchase the term life insurance at rates that would get steadily higher, or you would have to find a new life insurance policy to buy so that you could be covered. This led to many problems in general. First of all, when a person was older than 60 and their term ran out, they would often have a hard time finding life insurance because they were not young enough to be covered. Also ,with many people living longer than they used to, you would find that older people were running out of their term life insurance and were not able to pay for the increasing prices for their own policy, or find a new one that they could afford. It was through these problems that whole life insurance was born.

With whole life insurance, there is no term. It means that you will be able to purchase the life insurance that you would like to be able to purchase, without having to choose the right term for you. It also means that no matter how long you live, you will be able to have the life insurance benefits to be able to help yourself and your family with your final expenses. These are often the hardest things to do and the things that people worry about the most when it comes to life insurance. Therefore, if you are thinking about life insurance and don't want to have to worry about a term for your life insurance, you should look at whole life insurance.

Whole life insurance was also changed so that some policies can be cashed in while you are still alive. You might, for instance, be able to take your policy and get the payments if you have been diagnosed with a terminal illness or disease. This way, you can make your own arrangements and take care of your family before you die. This can give you an even greater feeling of knowing that no matter what happens to you, your life insurance will be there to protect you.

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