How a 20 pay Life Insurance Plan Works
When shopping for life insurance you may have seen options for a 20 pay whole life policy. With the various plan options out there you may be wondering what makes a 20 pay policy different. Keep reading to learn a bit more about how these work.
Most 20 pay policies include the same coverage as your typical traditional life insurance plan. In both cases you choose the right plan for your needs, pay the premiums until the plan is paid, and when your death occurs your beneficiaries receive the payment. The difference in a 20 pay plan is that the premiums are set to be paid off in 20 years instead of over a whole life time. This means that your payments could be a little higher depending on the plan, but after twenty years the plan has been paid in full and the coverage remains. Like any insurance policy terms may vary depending on which plan you choose.
If you’re considering a 20 pay whole life insurance policy you can rest easy knowing you’ll get the same great coverage as many traditional plans. The big difference is mostly in how the premium payment schedule is set up. If you have any questions your life insurance agent should be able to help.