Advantage of Whole Life Insurance

What is the Advantage of Whole Life Insurance over Term Life Insurance?

A major advantage of whole life insurance is that the policy builds a cash value. Part of the premium is invested by the insurance company and builds inside the policy. You can take a loan on the cash value in the policy.

1. It pays a death benefit to your beneficiary.

2. Offers tax-deferred cash value accumulation.

3. Remains in force during your entire lifetime.

4. Builds cash value and permanent protection.

5. The cash value belongs to the insured.

6. Several premium payment options including one lump sum.

7. You can take out policy loans or cash in the policy.

8. Interest builds until you withdraw the cash value.

9. Premiums are fixed regardless of health or age.

10. Policy will not cancel because of age.

11. Has loan value for borrowing against.

12. Guaranteed coverage for life when premiums are paid.

There are several options for premium payment based on the type of whole life policy you select. You can pay a lump sum up front, pay for a specified period of time (either 10, 20 or 30 years), or pay to age 65.

Recommendation: A major Advantage of Whole Life Insurance is that it offers a good buy for people between 20 to 50 years of age who need coverage to extend throughout their entire life.