Michigan Single Premium Whole Life Insurance
One of the most popular life insurance plans in Michigan is the Michigan single premium whole life insurance program. By the name, it should tell you that this program is based on one single lump premium going in. At this point, the policy is paid off, and the death benefit grows as does the cash value.
A SPWL policy is funded partially for the death benefit, but it is also funded to provide significant “living” benefits (accelerated benefits for long term care expenses or if the client has a critical or terminal illnesses). At any point, you can remove cash value from the policy, and the policy can still stay in inforce.
Another positive aspect of the SPWL is the ability to avoid probate. Because the benefit from a SPWL policy is paid as a death benefit, the money will pass outside of the probate process.
So when you put your lump sum in, the policy already starts with high cash value, which is very nice. For those SPWL policies that do not have the Return of premium option, some are designed to have high early cash value. These policies act like money market accounts, in that they have a minimum guaranteed rate of return. So, policies with low surrender charges should in very short order (a few years) have a cash surrender value (CSV) equaling 100 percent of the client’s premium, and then after that, the account balance should increase.
So who are buying Michigan SPWL products? Will obviously Seniors due to the information above. For consumers high up in age, a single premium life insurance product is essential. But who else would be interested in this product? The answer is everyone.
Count on this, whatever lump sum you put in ($5000 minimum), you get twice in death benefit to begin. Consumers find this attractive as some do not want to pay a life insurance premium for the rest of their life.
Parents also find this attractive for kids. Once approved, the policy stays with a young adult for the rest of their life. It could be a nice way to pass on later funds for a child (college & house buying). Again the policy does have cash value that grows at a above average rate.
So what is the downfall? The Single Premium life insurance does take a significant amount of funds to get started. As you can see by the benefits, it is worth it.
This product is underwritten, so be prepared for that. With a death benefits below $25,000, the underwritten process if very simple.
At http://www.michiganhealthbroker.com, we work hard to offer all major life insurance products for the state of Michigan. From term life, to products for kids, to SPWL products, we have everything. Consumers need to understand the need for life insurance, before it is to late.
Randy Palmer
http://www.michiganhealthbroker.com
Obtain vital information about the topic of where to buy flotrol – read the web page. The time has come when concise information is truly only one click of your mouse, use this chance.