Whole life insurance is also called cash value insurance or permanent life insurance or straight life insurance. However, such a transaction could cause a decrease or cancellation in the death benefit. In case the person purchasing the policy dies, the company pays particular amount to the beneficiaries. In case the person purchasing the policy dies, the organization will pay particular amount towards the beneficiaries. There are two basic kinds of life insurance your agent will most likely discuss with you, term and whole.
Buy Now(price as of Feb 19, 2014). Term is cheaper, often costing under $100 a month if you are healthy and never a smoker, but only pays upon the death of the individual covered. In case of death of the insured person, the beneficiary named in the contract is eligible to receive the amount of 'death benefit'. It represents money which can be earned through the insurance company that offsets the death benefit you purchase.