Advantages of Whole Life Insurance

"What are they?"

Advantages of whole life insurance, so what are the benefits if you decide to buy?

When you define whole life insurance, it really falls under the general category of permanent life insurance to cover you for your whole life.

In other words, as opposed to a term life policy, you are buying for the long haul.

Whole life insurance is one of the oldest life insurance policies and probably one of the most recognized because it’s been around for so long!

There are two main types of life insurance that all the others fall under, yes….you read that right…..just two! They are permanent and temporary life insurance (a.k.a.- Term life insurance), read more about them here and their main differences to get a big overview.

You’ll quickly be able to tell the difference between what makes each of them unique.

What is whole life insurance-
Main advantages

In general, the advantages that whole of life insurance offers are:

• Fixed premiums that won’t increase
• A guaranteed death benefit no matter when you die (as long as you pay your premiums)
• Will insure you for your whole life and not just for 20 years like a term policy
• Cash value life insurance -The policy can build cash value which grows tax deferred over time. You won't build cash value with a term policy.
• If you ever need to cancel your policy, you will receive whatever cash value you have built up.

Again, one of the main advantages of whole life is that it offers “whole life” protection. So if you buy a policy today and you’re 35 years old and assuming you keep paying your premiums each month… you will have coverage until you’re 100 years old.

This is very different from a term policy which only offers you temporary coverage.

Find out if temporary insurance is right for you.

Cash value life insurance

Years down the road, if you decide you need to cancel your policy, you will get the cash value that you’ve accrued. You can also borrow against the cash value in your policy if you need to.

Read more about cash value life insurance.

Whole life insurance-
An example

So, let’s just say you sign up for one of those online whole life insurance quotes with a death benefit of $100,000. This means you are guaranteed this amount even if you die the next day, which by the way is very unlikely! The life insurance companies are betting that you’ll live a very long and happy life.

When you buy whole life insurance, you are purchasing for the long haul and not for sudden death but really a natural death.

Life insurance is a great tool and if purchased, can really help your family when they need it the most.

If you're in the Houston, Texas area and are searching for a Houston whole life insurance quote have a friendly agent contact you.

Contact a knowledgeable agent today! They can help you get whole life insurance advice to weigh all your options and get your quote to start comparing!

Return to Permanent Life Insurance

Return from Advantages of whole life insurance to Homepage