Single Premium Life Insurance
Single premium life insurance requires a lump sum payment to enact the policy's benefits. The lump sum usually will guarantee that your beneficiary will receive the death benefit when you die. However, not every life insurance provider guarantees that you will never again have to pay premiums after your lump sum payment, so it is important to understand the insurance company's terms.
The death benefit is directly related to the lump sum of cash you put into the policy. The larger the amount, the larger the death benefit. The benefit increases as time goes on and your account accumulates more value. You can withdraw money from your policy but it will be taxed and subject to fees. Certain insurers will allow you to withdraw money, tax-free, from your life insurance policy if it is used to pay for long term care expenses.
To get life insurance quotes use our online form. You can obtain quotes from life insurance companies in your particular state.
Sources
- A Look At Single-Premium Life Insurance, George D. Lambert. Retrieved May 8, 2008, from http://www.investopedia.com/articles/pf/05/SinglePremLife.asp
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