Single Premium Life |
| Single Premium Life Insurance in the United States |
| Single Premium Life is the simplest form of whole life insurance. In exchange for a lump sum, an insurance company provides an insurance contract that requires no future payments in order to remain valid. The death benefit paid by this contract depends on the same factors that determine term life rates (age, health, etc.) as well as the amount paid for the contract. The money is invested in a savings account, and interest accumulates in the account. Fees are charged when money is removed from the account prematurely, but loans may be taken out against the saved equity.
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