When investigating life insurance you will surely come back across the terms “whole life” and “term life”. Knowing what these life insurance product are and what they will do for you and your family is very necessary when deciding upon the type of policy to buy.

Whole life

Life insurance of this type is employed as a vehicle for investment with life insurance. A whole life policy builds money value. Depending upon the policy it is potential to money it out or, in some cases, to borrow against it.

Is whole life advisable?

If the cost of insurance on the dividend option term rider is higher then the monthly premium being paid. What happens to the term insurance portion of the whole life policy at that time? I have this rider now on my whole life policy to maximize my death benefit at the lowest cost but I’m thinking that either I will have to pay more premium if the cost goes up or I have to drop the rider.

My Dad purchased whole life insurance through AXA Equitable which is all paid for. What happens if the life insurance company goes bankrupt or their assets are under water like so many other financial institutions these days? Will the benefits still be payable?
I also think it’s strange that he had to pay $700 more to this insurance company as an “adjustment”(?) recently even though the policy was fully paid for a long time ago. Is this normal?

I’m 26 with 2 kids and would like to get whole life insurance started. Where is the best company to get whole life insurance from?

Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid?
I have tried to do some research on my own, but I still can’t seem to fully understand this matter. Any help will be greatly appreciated!