Not exact matches
That being said, there are some downsides to
whole life insurance including inflexible premiums, surrender
charges if the client decides he or she no longer wants the
policy, and the rate of return
on a
whole life insurance policy tends to be lower than other investments.
The two main reasons you might not want to change
policies are surrender
charges (only in permanent plans such as
whole life or universal
life), and your new
policy will likely contain a new two year contestable period, which means the company could potentially weasel out of paying the
life insurance proceeds upon your death if you die within 2 years of purchasing the
policy and they find that you answered questions fraudulently
on your application.
Growth of the
whole life insurance cash value depends
on a variety of factors, including the premium amount and the level of fees
charged by the
life insurance company, the performance of the investments the
insurance company makes, the amount of claims paid and properly blending available
policy riders.