Advantages of Whole Life Insurance
There are a number of advantages of whole life insurance many people miss.
Term life insurance, which is virtually the opposite of whole life, is often less expensive initially and it provides large coverage amounts.
The problem is that with term life insurance, the coverage is only temporary.
At the end of the policy, your premiums will increase, often significantly, and you do not get any real benefit for your investment thus far.
That is the difference with whole life insurance. The key advantages of whole life insurance are that it provides you with numerous other tools.
Top Advantages of Whole Life Insurance
What can whole life insurance offer to you? Check out each of the following benefits offered by this insurance. You may notice that these are benefits well worth investing in.
- Long Term Coverage: Whole life insurance stays in place as long as you are alive, assuming you continue to make payments on your policy. This means that your family or heirs are protected long term.
- Steady Premiums: Most types of whole life insurance have a steady premium. It does not change drastically as term life insurance premiums do. The younger you are when you purchase whole life insurance, the less expensive it will be.
- Added Value: Whole life insurance builds cash value. This means that the policy is actually earning money for you. The death benefit is not the only value to the policy.
- Borrowing: You may be able to borrower from the whole life insurance policy to fill your needs. Borrow to catch up on bills or to pay for your long-term health care costs as needed. You cannot borrow from most other insurance plans as easily.
- Retirement Income: You can use the value of your whole life insurance plan to help supplement your income during retirement. Most people will need additional sources of income after Social Security and this policy can help with that.
- Include in Your Estate Plan: You can also make whole life insurance part of your estate plan. You can list your heirs as the beneficiary on the policy. There is no tax paid by your heirs on life insurance death benefits.
These reasons are often enough to encourage people to purchase this form of insurance.
It may be the right option for you.
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