What is Limited Whole Life Insurance?

A limited whole life insurance policy works the same way as a standard whole life insurance policy with one important difference: the premium payments stop when the policy holder turns 65 years old. The limited version of the whole life policy continues to provide a guaranteed payout that will never expire. The premium and death benefit are quoted at the time that the policy is purchased and will not change at any point during the life of the policy. The monthly or quarterly premiums are invested, and the policy may eventually accumulate a cash reserve. Policy holders can choose to use the cash reserve to pay premiums, as investment capital, or as cash to use for any purpose.

No More Payments? What's the Catch?

To make it possible for the payments to stop when the policy holder reaches 65, the payments on a limited whole life insurance policy will usually be a little higher than those of a standard whole life insurance policy. The higher payments make many people think that these policies are more expensive, but the total cost for the same coverage from the same insurance provider will be exactly the same. If someone purchases an insurance policy a little later in life, they may appreciate the opportunity to accelerate the payment schedule in order to retire with guaranteed life insurance coverage that no longer has a premium.

Ideal for Those Who Hate Investing

A limited whole life insurance policy is also an attractive option for those who have little or no interest in building their own investment portfolio, but want to ensure that they leave a death benefit for their family and have a nest egg in the meantime. A limited whole life insurance policy builds a cash reserve even faster that a standard whole life insurance policy due to the accelerated payment plan. Because higher premiums are paid each month, they will draw interest and pay dividends at a higher rate. The premiums, interest, and dividends continue to compound much like the interest paid on a bank account. If the policy holder experiences a financial need, they will be able to borrow up to 80% of the policy's value at a much earlier date than if they had purchased the standard policy. Instead of visiting an agent or broker in person, consider an online insurance resource life LifeInsuranceRates.com when getting limited whole life insurance quotes. We eliminate the need to make an appointment or wait for an endless time before speaking to an agent. With an online service, you'll have instant access to numerous limited whole life insurance plans. If extra service is required, it is just a click, email, or phone call away. Use the form at the top of this page to view limited whole life insurance rates now!