Advantages And Disadvantages Of Whole Life Insurance

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2.1.2 Comparison of Advantages and Disadvantages for Types of Whole Life Insurance Comparison of Advantages for Types of Whole Life Insurance 1. Variables Life Insurance Some of its advantages are the premium value is usually fixed; which makes the policy holder can be at ease about rising premium issue. Investment variety is also one of its advantages due to wide variety investment options that available, which can offer many choices in potential growth options of invested funds to policy holder (Wright, 2015). 2. Indexed Universal Life Insurance The advantages may include above average returns when the selected index does well (Dowd, 2015). Policy loans are permitted and usually are income taxes free. This insurance offers better returns than other universal plans in a strong stock market and has lower risk than stock investing, since cash value will not decrease if the target index falls (Motley, 2015). 3. Endowment Policy This policy are liquid in nature and it insurances the risk for a particular time. An option for policy holder to add accidental riders will be given when they pay marginal premium. This policy is also risk free because it does not have interest rate risk or investment risk. Plus, unlike many life insurance policies, this policy does not need a medical exam to qualify for and endowment life insurance policy (Fontinelle, 2015). 4. Variable Universal Life Insurance This insurance allows policy holders to invest the cash value of their policies in
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