Single Premium Life Insurance Basics
If you are planning for your retirement, or semi-retirement, years, you may be interested in a whole life product called single premium life insurance (SPL). Unlike most life policies, you actually fund the whole policy with one payment at the very beginning. This may seem like an odd way to fund a policy, but it has some advantages for some people.
Why Would You Fund Life Insurance With One Payment?
Many people ask about this product because they cannot understand why they would want to give up control of their money. Once you do write the check, you will have to let the insurer manage your money for awhile unless you want to get hit with surrender charges or penalties.
- You do get a lifetime of coverage without worrying about making regular premium payments. This can be convenient.
- These policies have an asset value. Since the insurance is already funded, the cash account can start to grow quickly.
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