LIFE INSURANCE -Can you take out a life insurance policy on my life? Why or why not?...

LIFE INSURANCE

-Can you take out a life insurance policy on my life? Why or why not?

-Can you be a beneficiary on my life insurance policy? Why or why not?

-What is the difference between term life insurance and whole life insurance?

-What is meant by cash value?

-What is a loan clause in a cash value policy?

Solutions

Expert Solution

Q.1 I take life insurance policy because it's provide benefit to my family or nominee in future.so I opt for life insurance policy.

Q2.Yes I am ready to became beneficiary because from this I can receive advantages from life insurance policy in future.

Q3.Following are the difference between term life insurance and whole life insurance:

1.Term life insurance is for certain period normally 20 to 30 yrs.

In whole life insurance the premium is payable for whole life.

2.Term insurrance is less costly compare to whole life insurance.

3.Term life insurance policy is easy to understand.

Whole life insurance is complex to understand.

4.Term life insurance is not for whole life coverage.

Whole life insurance provide whole life coverage.

Q4.Sum of value arises from whole life insurance policy is called cash value it is the money held in policyholder account.

Q5.Automatic premium loan account in cash value policy.

Automatic premium loan account clause gives optional opportunity to policyholder to make that automatic cash payment based on the current cash in policy.

jeff jeffy answered 1 year ago

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