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Compare Find And Buy The Best Low Cost Affordable Whole Life Insurance Cover Comparison In Hong Kong 

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Compare Find And Buy The Best Low Cost Affordable Whole Life Insurance Comparison In Hong Kong

Here you can Compare, Find, and Buy The Best Low Cost Affordable Priced Whole Life Insurance Plans Comparison with worldwide cover.

You can now be assured that we are going to work very hard for you in finding the Best Whole Life Insurance Plans for you at the Lowest Affordable Cost.

In addition we only recommend and work with the Top Life Companies Worldwide as this also ensures that we provide the Best Whole Life Insurance Plans for our clients.

Why don’t you go ahead and get in touch with us today and put us to the test.

Whole Life Insurance (Whole Of Life Insurance) (WOL)

Whole life insurance, or whole of life assurance also called “straight life” or “ordinary life,” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided the required premiums are paid, or to the maturity date for example typically to age 100 although some WOL policy’s can remain in force until death at any age.

The premiums are fixed, based on the age of the life insured on the in force date (the date the policy comes into effect), and usually do not increase with age. The owner policy normally pays premiums until death, except for limited pay policies which may be paid-up for example 10 years, 20 years, or at age 65, with the life insurance cover continuing to the death of the life insured or until maturity of the life insurance policy.

Whole life insurance belongs to the cash value category of life insurance policies, which also includes Universal Life Insurance.

The other major form of life insurance is Term Life Insurance, which may be individual term policies or group term certificates. As a general rule, term life is intended for temporary use and has no cash value.

Whole Of Life Insurance Death Benefit

The death benefit of a whole life policy is normally the stated face amount (the sum insured).

However, if the policy is “participating”, the death benefit will be increased by any accumulated dividend values and / or decreased by any outstanding policy loans. (see loans below) Certain riders, such as Accidental Death Benefit may exist, which would potentially increase the benefit.

Whole Of Life Insurance Maturity

Typically a whole life policy is said to “mature” at death of the life insured or the maturity for example the life insured reaching the age of 100, whichever comes first.

However some whole life policies have longer maturity ages, if any at all, were the insurance policy is designed to pay out the sum insured on the death of the life insured.

Increased maturity ages have the advantage of preserving the tax-free nature of the death benefit. In contrast, a matured Whole Of Life policy may have substantial tax obligations in certain jurisdictions.

When To Consider Whole Of Life Insurance

Whole Of Life Insurance Personal and Family Life Insurance

Individuals may find whole life attractive because it offers coverage for an indeterminate length of time (this is important because nobody knows when they are going to die). It is the dominant choice for insuring so-called “permanent” insurance needs, including:

  1. Funeral expenses
  2. Estate planning
  3. Surviving spouse income
  4. Supplemental retirement income

Individuals may find whole life less attractive, due to the relatively high premiums, for insuring:

  1. Large debts
  2. Temporary needs, such as children’s dependency years
  3. Young families with large needs and limited income

In the second category, level term insurance is generally considered more suitable and has played an increasingly larger role in recent years.

Whole Of Life Insurance Corporations and Businesses 

Businesses may also have legitimate and compelling needs, including funding of:

  1. Key Person Life Insurance
  2. Buy-Sell agreements
Typical Characteristics Of A Whole Of Life Insurance Policy
Level Premium Whole Of Life Insurance

Level premium whole life insurance provides lifetime death benefit coverage for a level premium (cost).

Whole life premiums are much higher than term insurance premiums. However because term insurance premiums rise with increasing age of the insured, the cumulative value of all premiums paid under whole and term policies are typically roughly equal if the policy continues to average life expectancy.

Whole Of Life Insurance Loans

Whole Of Life insurance contracts typically stipulate that the policyholder is entitled to a cash value reserve that is part of the policy and guaranteed by the company.

This cash value can be accessed at any time through policy loans that are received income tax-free and are paid back according to mutually agreed-upon schedules. These policy loans are available until the insured’s death.

If any loans amounts are outstanding—have not yet been paid back—upon the life insured’s death, the insurer subtracts those amounts from the policy’s sum insured benefit and pays the remainder to the policy’s beneficiaries.

The advantages of whole life insurance are its guaranteed death benefits; guaranteed cash values; fixed, predictable premiums; and mortality and expense charges that do not reduce the policy’s cash value.

The Death Benefit amounts of whole life policies can sometimes be increased through accumulation and / or reinvestment of policy dividends, though these dividends are not guaranteed and may be higher or lower than earnings at existing interest rates over time.

Whole Of Life Insurance Reserves

The over-payments inherent in the Whole of Life insurance level premium system means that a large portion of expensive old-age costs are prepaid during a person’s younger years.

Life insurance companies are typically required set up reserve funds to account for these over-payments, which represent promised future benefits.

Whole Of Life Insurance Cash Values

Cash values are an integral part of a whole life policy, and reflect the reserves necessary to assure payment of the guaranteed death benefit.

Thus, “cash surrender” (and “loan”) values arise from the policyholder’s rights to surrender the contract and reclaim a share of the reserve fund attributable to his policy, the cash policy surrender value.

Types Of Whole Of Life Insurance 
Whole Of Life Insurance Non-participating

All values related to the policy (death benefits, cash surrender values, premiums) are usually determined at policy issue, for the life of the contract, and usually cannot be altered after issue. This means that the insurance company assumes all risk of future performance versus the actuaries’ estimates. If future claims are underestimated, the insurance company makes up the difference. On the other hand, if the actuaries’ estimates on future death claims are high, the insurance company will retain the difference.

A non-participating Whole Of Life insurance policy is issued by pubic liability companies (PLCs).

Whole Of Life Insurance Participating

In a participating policy (also known as “par” and “with-profits policy”, the insurance company shares the excess profits (divisible surplus) with the policyholder in the form of annual dividends. Typically these “refunds” are not taxable because they are considered an overcharge of premium (or “reduction of basis”).

Participating policies are typically (although not exclusively) issued by Mutual life insurance companies. However, Stock companies sometimes issue participating policies.

Whole Of Life Insurance Variations

Whole Of Life Insurance Single Premium

A form of limited pay, where the pay period is a single large payment up front.

Whole Of Life Insurance Interest Sensitive

This type is fairly new, and is also known as either “excess interest” or “current assumption” whole life. The policies are a mixture of traditional whole life and universal life. Instead of using dividends to augment guaranteed cash value accumulation, the interest on the policy’s cash value varies with current market conditions. Like whole life, death benefit remains constant for life. Like universal life, the premium payment might vary, but not above the maximum premium guaranteed within the policy.

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