Limited Payment Life Insurance
The provisions of limited whole life insurance, also known as limited payment life insurance, are similar to those of standard whole life insurance policies, but the premiums are guaranteed to stop when the insured person reaches 65 years of age. The policy is permanent and the death benefit remains in force when the premiums cease. Limited payment life insurance offers a fixed premium and will eventually accrue a cash reserve like other whole life policies, and the total cost for both types of policies is the same.
How Can The Payments Stop At Age 65?
A limited payment life policy usually charges slightly higher whole life insurance rates than standard whole life, since the term of payments may be shorter. The total cost is the same and affordable, but since there may be fewer payments on the limited payment policy, each payment is not as cheap as term life insurance rates. These policies are primarily designed for people who have chosen to buy life insurance later in life and want to have guaranteed life insurance with no payments when they retire.
Limited Whole Life Insurance For Estate Planning
The advantage of a limited payment life policy for estate planning is that the policy leaves a death benefit for surviving family and also provides a nest egg at retirement for the policyholder. Since limited whole life policies build cash reserves faster than standard policies, they are an attractive option for those planning retirement. Policyholders can borrow up to 80% of the cash value of the policy, while still retaining the death benefit, which can provide a nice cushion for retirees.
Who Should Consider Limited Payment Life Insurance?
Limited payment life insurance is a good investment for those within 10 to 15 years of retirement. Younger people have other investment options which are better-suited to long-term financial planning, including standard whole life insurance, universal life insurance, variable life insurance, and variable universal life insurance.
People who have failed to sufficiently plan for their retirement will find the limited whole life policy an attractive way to provide a little extra for their retirement years. Compare term vs. whole life insurance to figure out which type of policy is best for your needs.
Limited Whole Life As Additional Insurance
Some people may have a whole life insurance policy which has been paid in full and is part of their retirement savings. If they plan to cash in the policy to help pay expenses during their retirement, they may want to consider a limited payment life insurance policy for extra protection.
Cashing in the whole life policy will leave them without life insurance for their survivors, and a limited whole life policy can provide the death benefit they need with an emergency fund that can be borrowed against if necessary.
Whole Life Insurance Quotes
By entering your 5-digit zip code in the box provided, TheLifeInsuranceQuote.com can get you multiple free, online life insurance quotes for limited payment life insurance, and all other forms of life insurance coverage.
At TheLifeInsuranceQuote.com, we provide consumers a life insurance quote to help them instantly find and compare life insurance rates, policies, and coverage from the best life insurance companies. This helps shoppers and potential life insurance policyholders buy the best, affordable life insurance available in the market.
Enter your zip code to begin a life insurance quote now.
