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Archive for August, 2005

Reduction of Premium

Using the dividends to pay down the premiums due for the next year.


Paid-Up Option

Using the dividends from a Whole Life Policy to pay off the premiums faster.


Whole Life

Required by law to show cash values in the first 20 years.


Universal Life Policy

The Insurer credits the policy with a current (non-guaranteed) interest rate and backs the cash value with a lower guaranteed (contract) rate.


Term Insurance Premium

All things being equal, the shorter the term the lower the premium.


 

 

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