Whole Life Premiums
When you pay the premium, part of it goes to pay for insurance coverage, and the remainder goes into a cash account. If you have policy that is a participating policy, it may pay you a periodic dividend, which is considered a return of excess premium. Premiums on participating policies are generally higher than non participating (no dividend) policies.
With Your Dividends You Can:
- Apply to your policy premiums
- Get them sent to you in cash
- Purchase a policy rider
- Use the dividends to guarantee the original policy, if large enough.
Whole life can be used if your estate exceeds the inheritance tax exemption amount or is comprised mostly of real estate or other illiquid assets.
|
