* The Situation:
Whole life insurance has performed well through all market cycles, particularly the current one.
The insurer said the premium payable by a 50-year-old man for a single-premium
whole life insurance policy that promises to pay 5 million yen on his death will be cut by 49,300 yen to 3,641,300 yen.
For
whole life insurance, the gift tax value equals the policy's "interpolated terminal reserve value" plus any premiums the donor paid before making the gift that cover the period extending past the gift date.
The percentage of expenses to premiums for
whole life insurance usually varies between 10 percent to 40 percent.
Assuming no prior knowledge of life insurance, editorial includes definitions of terms, descriptions of policies and plans, and information on such topics as using life insurance to provide cash, taxation on gifts of policies, cash value and death benefit, consequences of using the transfer tax, tax advantages, and the difference between term and
whole life insurance. The book costs $80.
Whole life insurance gives more extensive protection - you know your family is financially protected if you die.
According to Gary Kimata, regional director for Manulife Financial, traditional
whole life insurance policies, vanilla investments with their guarantees and conservative cash savings, have gone the way of the buffalo.