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Ordinary Life Insurance
Ordinary whole-life policies provide for the payment of the face value only upon the death of the insured. Maturing only upon death, such policies are taken out primarily for the benefit of others, and, therefore, represent pure life-insurance protection which the insured has unselfishly provided for those dependent upon him. During the earlier years of the insured's life this type of insurance in the great majority of cases affords protection at moderate cost for wife and children or other dependents. In the later years of life when it may he felt that such protection is no longer necessary, because the children have become financially independent, the insurance affords a convenient means of leaving legacies and bequests. As explained in a previous chapter, the premiums on this form of insurance are paid annually, semi-annually, or quarterly, under the level premium plan for the whole of life, while the proceeds of the policy may at the option of the insured be paid either in one lump sum or on the installment plan. Sections in Chapter 6. |
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