If you’re looking at a 20 pay whole life policy, you may be wondering what makes it different and which things are the same. For the most part these policies work like any other. Keep reading to learn more.
The Coverage is Usually the Same
With a 20 pay policy you can still get the same coverage you would in many traditional plans. The difference is how your premiums are scheduled for payment.
Your Premium Schedule is Different
The one big difference in a 20 pay plan when compared to a traditional plan is the fact the premium payments are scheduled over the course of 20 years instead of a lifetime. Your payment may be a bit more depending on your chosen policy, but once it’s paid in full, the coverage outlined in your plan is yours.
The Same Benefits Should Be Available
Some plans may include parameters for early payment in the case of a terminal illness, accidental death benefits, or allow you to borrow against your policy. Many 20 pay plans offer these options as well.
To sum up a 20 pay whole life policy isn’t much different than a traditional life policy. Coverage and additional benefits should be the same as many traditional plans. However, instead of paying your premiums over the course of a lifetime, you pay them over 20 years.