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The Disadvantages These include your age whether you smoke the length of a term policy the amount of insurance and your health But the cost of whole life insurance can easily exceed a term policy with the same death benefit by thousands of dollars a year.

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If you discontinue the policy the amount you will get is called the special surrender value This is arrived at by multiplying the total paid-up value paid-up value bonus with a multiplier called the surrender value factor The surrender value factor is a percentage of paid-up value plus bonus.

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