Whole Life Insurance

Should you get whole life insurance? Is it a better choice than term life insurance? How can you use it as a savings tool? So many questions to consider when thinking about getting whole life insurance, and you will find the answers here.

What Is Whole Life Insurance?

Like term life insurance, whole life insurance provides your beneficiaries with a death benefit upon your passing. 

The main difference between the two is that whole life offers insurance for life while term life provides coverage for a specific period.

Another unique feature of whole life insurance is that the cash value accumulates as you pay your premiums, which may be used as an investment. 

You can also borrow against the monetary value of the policy or make withdrawals. 

Benefits of Whole Life Insurance

Adding whole life insurance to your financial plan provides many benefits, including using it as an investment. It offers a wide range of benefits as a flexible insurance plan, such as:

  • Enables the use of cash value as an investment without paying taxes unless you withdraw the money
  • Borrow the cash value to pay for your child’s college fees or to buy a house, without any tax
  • Ability to receive part of the death policy even when still alive if diagnosed with certain medical conditions
  • No risk of losing your plan when it expires before filing a claim or your death 
  • Includes death benefit as well as cash value

These perks highlight how whole life insurance can help your family. It will place another layer of protection for your loved ones in case of your untimely passing. With its cash value, you can also enjoy some of the benefits before your death.

Using Whole Insurance to Save

Life insurance plans can protect your loved ones in various ways, but the goal is always the same – to reduce expenses that you pass on to your surviving family members. Some of these plans can build cash value you can use to save for anything, including retirement.

With whole life insurance, you can enjoy an amount of money that may exceed the cash value of your policy. Your money grows as time passes, which accumulates at a fixed rate regardless of the volatility of the stock market.

When you retire, you can access your money through dividends. Some whole life insurance policies pay dividends yearly, which you can use for various purposes. Note, however, that these are not guaranteed dividends.

Whole Life Insurance Provides Significant Benefits

Whole life insurance provides financial protection for your loved ones after your death. Whether term life or whole life insurance better suits you, knowing the benefits and features are critical. With that, you can make an informed decision on which life insurance plan is right for you.