How Does Custom Whole Life Insurance Work?
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63333 POINTSview profilePeggy MaceMost of the U.S.New York Life's Custom Whole Life Insurance works by your putting money into the policy for a set number of years, and optimizing the the policy to accumulate cash value that is paid up at the time you need to borrow from it (generally tax free) for your financial goals.Answered on August 10, 2013flag this answer
5877 POINTSview profileStan Cox IIInsurance Adviser - Broker, SC Insurance Services, Oahu, HawaiiAs Peggy said, Custom Whole Life is a term that New York Life uses. Basically the "custom" part simply means the number of years the policy will be funded. The standard terminology is "10 year pay", or "15 year pay", etc. Which again refers to the number of years the policy will be funded by paying premiums. Typically whole life policies are designed to have premiums paid over the life of the client up to age 100. So shorter, "custom" funding periods result in considerably higher premium payments. The advantage is that the premium payments end much earlier and the cash value increases faster.Answered on September 2, 2015flag this answer
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