As the name suggests, this is a type of insurance policy that will provide cover for the lifetime of the insured person. There are many types of the that one can choose from. The most frequent one is the ordinary level premium type and also known as decent life. The death benefit to be given will remain constant throughout the entire life of the insured.
The level premium concept was invented to make whole life contract affordable to many people. The policy owner will agree to pay to a level or fixed premium which is paid at regular intervals which have been agreed. This could be done up to the age 100 if the insured lived up to that long. In return, the company will agree to pay the benefit when the person has died if these individuals have not violated the agreement. Those persons who have ceased paying the premiums and, in the end, terminate their policies should be given a cash surrender value that is scheduled.
Those people who need this insurance coverage type are ones who want to provide income for family members who are dependent. This is after the head if the household has passed on thus they want to cover their family from financial problems. It is also for those who wish to liquidate business debts by creating a fund that will enable the family to survive the numerous debts. It is also useful for people who wish to provide enough money at their death to cover for college education for their children. This will prevent the family from having to suffer paying the debts once the head of the household has died.
This policy is a good choice for people since cash value interest which may have accumulated is tax-free. This will, however, be dependent on whether the gains have been distributed throughout the life of the person or at the time of death. This allows the beneficiaries to reap all the benefits from the insurance. It will cover for children and their education to saving them the trouble. It is also a fact that there is no record of the death benefit which has been accumulated over the years. It will also not offer any details of whom the benefit will be paid to. This will keep them safe from terrible people who might want to go after the money.
The setting of the premium is left to the concerned company. They have the freedom to set it according to their marketing strategies. If one is not comfortable with a particular offer, they have the choice to look for another one which favors them and one they like.