The answer is yes. Dividend-paying whole life insurance comes with almost all whole life policies now. Dividends come from the amount insurance companies earn from their participating - par - policies. These are not guaranteed. But you can withdraw the dividends every year or leave them to add up.
Withdrawing dividends is not the same as cashing whole life insurance policy. A whole life policy builds cash values from the premium so it also acts as a savings plan. When you cash in, you get the cash values plus any accumulated dividends. You also end the policy and you are no longer insured.
What is the cost of whole life insurance in this case? In money terms, the premium depends on your age, sex, health, occupation, lifestyle and other factors deemed necessary by the insurance company. Can you afford a whole life policy? Click here to find out who should pay for it.
You can get an inexpensive whole life insurance policy if you are not concerned about dividend-paying whole life insurance. A low-cost policy has almost no dividends. This is good since the main concern is protection.
Maybe a term policy is right for you. Term is lower in cost but it increases every time you renew it. Click here to find out what is term life insurance compared to whole life.
The dividends can make you think whole life insurance as an investment diversity tool. In a way, yes. But whole life insurance and investment are not the same. Their functions are different. One provides protection, the other may provide earnings based on your investment objectives.
"Should I cancel my 20 year-old whole life insurance policy?" you may ask. That depends on your situation. If you have other policies, you can get the cash values and dividends. A whole life policy lasts until death so the proceeds can cover final expenses, estate taxes or other costs.
On the other hand, if you want life insurance for international expatriate, whole life may not be the right one. But if you are looking for dividend-paying, whole life insurance can be an option.
Longer stay in the country is another reason to get whole life insurance. No medical exams depend on the amount, type of plan, health and other factors.
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