Frequently Asked Questions

This FAQ section delivers simple and straightforward answers to some of the most common questions investors have about whole life insurance. Whole life insurance is a major financial investment, requiring the commitment of the investor to pay the premium indefinitely. But the good news about that is the nature of the premium. Read our FAQ section and learn more about level premiums in whole life products. This and many other important topics will be hit on upon in the helpful articles we've included in this section.

Right Time to Buy Insurance

One of the things many investors struggle with is on the question of timing. Although life insurance does seem like a good idea for a lot of folks, our good intentions to get into a policy seem like they are often foiled by unexpected events and expenses that come up from time to time. As a result we sometimes wonder if there is ever really a good time to go out and get life insurance. Our FAQ section deals with this valid and important question. Read up on the right time to buy whole life coverage.

Whole Life vs. Term Policies

The debate continues to rage on and on about the merits of whole life insurance versus those of term life insurance. Some investment brokers declare that term plans are a better deal because they often come with a lower initial premium. We work through the thinking of those who would argue this way and give investors a few things to think about in the context of this debate. Both insurance products certainly have their merits, but our FAQ section explains why we endorse a whole life policy as an excellent long term investment worth buying into for the long term.

Types of Whole Life Policies

Prospective investors often hear that there are two types of whole life insurance plans; but hear little else about them, or what distinguishes them from one another. Read about participating and non participating plans, the main characteristics of each, and what makes them distinct from one another. Our FAQ section deals with the comparison between participating and non participating in a simple and easy to understand way. Take the time to read through this section for this and other informative answers to common questions.

Cash Value and Face Value

Cash value and face value are two insurance terms that are easy to mix up. In the case of whole life policies, the danger is definitely there because these plans accumulate cash value over time even as their face value holds steady. And if you're fortunate enough to live long enough, that cash value will eventually equal the plan's face value, although it is not the same as face value? Confused? Read through our FAQ on cash value versus face value and find out all you need to know. The concept is actually quite simple once you get an explanation that makes sense.

Borrowing against a Policy

Insurance investors from far and wide hear that as a policyholder with a whole life policy, you can borrow against it if you need to as an investor. The concept of borrowing from oneself in itself can be confusing. We explain some typical terms and help understand the reasons investors might choose to take advantage of this feature.

There are, of course, many different questions about whole life insurance, probably at least as many as there are investors. We have tried to capture as many of the common ones as possible to provide a wealth of information on topics of collective interest in our FAQs.