Monday, November 3, 2008

What are Some of the Advantages of Whole Life Insurance?

Although there is a big push towards buying Term Life recebtly, Whole Life insurance does still have a few advantages that you should consider before you jump on the "Term bandwagon". What are some of the advantages of whole life insurance, you ask? Let's take a quick look at a few of these.
  1. Whole Life insurance is "permanent" insurance coverage that is designed to provide protectionfor you for as long as you live, up until the age of 100. This is unlike most Term Life policies which are only designed to provide coverage for a specific period of time, such as a "10 Year Term" or "20 Year Term" policy.
  2. It provides a cash value that you can borrow against later in life. Many states require that the cash value exists within a short period of time, such as three years from the time you purchase the policy.
  3. There are many critics of Whole Life insurance because you are paying more than you would for Term Life and part of the premiums are being placed into a savings account. However, if you look at the two good reasons above you may change your opinion. Think about this for a moment. Do you already have a savings account? If so, are you putting money into it on a regular basis? Do you consider your savings account to be an asset that you can use anytime in the near future if needed?
These are all things that you should consider before turning your back on a Whole Life insurance policy. Many Americans find it almost impossible to save and when they do, they usually end up dipping into it before it can accumulate into anything substantial. This is one of the big advantages of Whole Life insurance. You pay into it just like any other bill and later in life you'll actually have something to show for it.

Summary - These are just a few of the advantages of Whole Life insurance. For many people they're not adavantages at all because they have no trouble saving money and would rather buy Term Life instead and invest their money elsewhere. However, for those peopleple that want something more permanent and would like something that they know they can rely on in their future, the advantages of Whole Life insurance cannot be ignored.

1 comment:

  1. To me whole life insurance policy is the best option that people should try to obtain for themselves. This policy serves one with maximum amount of benefits for the whole life time. Thanks for sharing the added advantages of this policy.
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