Whole Life Insurance Alabama, AL

Reader’s Question:

I am a resident of Alabama. I was told that when you get whole life insurance, it also means you will be paying for it as long as you’re alive. Is this true?

Desmond

Birmingham, AL

Traditional life insurance policies used to be that way–as long as you want to have continued coverage or have your policy enforced, payments are demanded on an annual basis for the rest of your life. Although this type of policy is still in the market, life insurance agents don’t offer them anymore as there are more payment-friendly life insurance products available.

This type of whole life insurance product that gives the policyholder a certain amount of time to pay for a whole life policy is called a limited premium whole life policy. Limited premiums were devised by life insurers because they have noticed that a lot of whole life policies are being surrendered by policyholders who have passed the age of 50. These policyholders figure that, at least, they’d be able to get some of their money back, as they find it impossible to pay forever for something that will bear fruit only when they die.

These limited premium policies allow policyholders now to pay life insurance premiums jut for 10, 15 or 20 years, depending on what age he started, and still get coverage for the rest of their lives. Limited payment is possible because the cash value and dividends the policyholder accumulated over the years are enough to pay for the whole life policy.

Desmond, if you want to have whole life coverage and don’t want to pay forever, be sure to ask your agent in Alabama to give you a quote for a limited premium whole life insurance policy.

Tags: life insurance, life insurance policy, whole life insurance