Whole life insurance premiums are always much higher than those for term life insurance. Why is this? Read on to get whole life insurance explained….
When the life insurance industry started out all policies were on the term life basis (the insurance only pays out if the insured dies whin the agreed term). This led to compaints that you could pay premiums for many years and no receive anything. Also, if you died in old age (after the term of your life insurance had expired) then you might leave your family with nothing. One anser to this would be to have separate investment plans and term life insurance arrangements. Whole life insurance policies combine the life insurance and investment plans into one.
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