Whole Life Insurance One Time Payment - How Does It Work And Are There Tax Penalties?

What is a Whole Life Insurance policy? Whole lifeportion of the premiums paid will go to pay life
insurance was designed to give your beneficiaryinsurance, but the rest goes into a separate account
protection for your entire life. This means that youthat will continue to grow as long as you maintain the
have insurance coverage from the date that the policypayments on the policy.
is enacted until the day that you die, up to 100 years ofThis account can be borrowed against later in life, if
age. At age 100 you will receive the "face value" ofyou need it. It can also be saved for college tuition for
the policy. The face value is the amount that the policyyour kids, retirement or any unseen financial hardships
was originally intended to pay. Example, a $100,000.00that you may encounter.
policy has a "face value" of $100,000.00.You can pay for your Whole Life premiums three
Whole Life Insurance is an excellent investment fordifferent ways. These ways are Whole Life Insurance
someone just starting out their financial future. WholeOne Time Payment, Straight Life and Limited Pay Life.
Life policies build what's called a "cash value" whichHere are the differences between the three different
means that as you continue to make your payments atypes of policies.