Life insurance products pdf

This article has multiple issues. Unsourced life insurance products pdf may be challenged and removed. Whole life premiums are fixed, based on the age of issue, and usually do not increase with age.

The insured party normally pays premiums until death, except for limited pay policies which may be paid-up in 10 years, 20 years, or at age 65. The death benefit of a whole life policy is normally the stated face amount. Certain riders, such as Accidental Death benefit may exist, which would potentially increase the benefit. A whole life policy is said to “mature” at death or the maturity age of 100, whichever comes first. To be more exact the maturity date will be the “policy anniversary nearest age 100”. The policy becomes a “matured endowment” when the insured person lives past the stated maturity age.

In that event the policy owner receives the face amount in cash. With many modern whole life policies, issued since approximately 2000, maturity ages have been increased to 120. Increased maturity ages have the advantage of preserving the tax-free nature of the death benefit. In contrast, a matured endowment may have substantial tax obligations. The entire death benefit of a whole life policy is free of income tax, except in unusual cases.