Traditional Whole Life Insurance
Chapters in this video
What this video covers
- How ordinary, limited-pay, and single-premium whole life differ in their scheduled funding patterns
- Why the premium payment period is not the same as the coverage period, and why paying ordinary whole-life premiums for 10 years does not make it a 10-pay policy
- How the seven-pay test works, what a modified endowment contract (MEC) is, and why single-premium funding alone does not prove MEC status
- How face amount, death benefit, and cash value differ, including why cash value is not automatically added to the death benefit
- How participating and nonparticipating policies differ, why dividends are not guaranteed, and what common dividend options may include
- How policy loans and debt affect surrender value or death proceeds, and how to calculate net surrender value
- How cash surrender, reduced paid-up insurance, and extended term insurance differ as nonforfeiture options
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