You're thinking about the future and providing extra protection for your family. This could be the right time for you to buy life insurance. In particular, whole life insurance might offer numerous benefits for you and your loved ones. Here's a closer look.
What Is Whole Life Insurance?
No matter your age, having life insurance means you have financial protection to cover your loved ones should something happen to you. With whole life coverage, that benefit can carry on for most, if not all, of your life.
Most whole life policies give you more than just a death benefit (the payment your named heir receives at the time of your death). They can also offer investment strategies and borrowing tools you can use during your lifetime. That's what makes them a fantastic investment.
What Are the Advantages Of Whole Life Insurance?
When compared to other forms of life insurance, whole life coverage has a few key benefits to offer to you. Keep in mind that every policy is a bit different and has different terms you need to know before making a buying decision.
- It Doesn't Expire: The key benefit to whole life is that it remains in place as long as you pay the premiums. The death benefit does not expire even if you die when you are 80 years old.
- It Builds Cash Value: Most whole life insurance policies build up cash value during your lifetime. Some of each of the premiums you make will go to build up this cash reserve for the policy. This reserve does not drop in value during your lifetime, but you may be able to borrow from it. This gives you a bit of a financial backup to count on.
- Premiums Remain the Same: In a basic whole life insurance policy, the premiums you make each month generally remain the same throughout the policy.
There are some forms of life insurance where this can change, but with traditional whole life coverage, the cost stays the same — giving you consistency.
Whole life insurance may offer other benefits to you. In some cases, these policies offer tax advantages — such as the death benefit being tax-free. They can also help you to borrow money for a lower cost than getting a loan. And, they can even pay you dividends in some cases. It's worth taking a closer look.