In this way, the benefit of the investment provisions
contained in a whole life insurance policy is vastly overrated — by life insurance agents.
Not exact matches
215 ILCS 5/143.1: Period of limitation tolled Whenever any
policy or contract for
insurance (except
life, accident and health, fidelity and surety, and ocean marine
policies)
contains a limitation period
in which the insured may bring suit, the running of the period is tolled from the date proof of loss is filed,
in the form required by the
policy, until the date the claim is denied
in whole or
in part.
Every ordinary
life insurance policy (term, universal
life and
whole life) that is approved and issued today
contains a «contestable clause» that is
in effect for a full two year period from the
policy date.
Variable
life insurance is similar to
whole life insurance — a simpler form of permanent
life insurance —
in that it pays a tax - free sum to your beneficiaries if you die, and
in that it
contains a long - term savings component called the «cash value» of the
policy.
In Texas
whole life insurance, universal
life insurance, and cash value
life insurance are just a few of the names given to
policies that
contain a long term investment.
These
policies do not
contain a savings component like you would find
in permanent
insurance such as
whole life or universal
life for example.
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.