Advantages of Whole Life Insurance Policies

We usually see term life insurance promoted these days, especially for younger people. But whole life insurance does have some advantages that come along with the higher premiums. Take a moment to have whole life insurance explained.

For one thing, whole life is, by definition, a permanent policy. As long as the premiums are paid, or the policy has been paid up, an insured person will be covered. Most specify that if the insured person dies before age 100, their specified beneficiaries will receive the policy face value. If the insured person survives until age 100, they will get the face value as a birthday present!

In addition, whole life insurance actually builds up a cash value. After the insurance portion has been paid for, any cash value earns a specified interest rate. In past years, the investment value was judged to be poor, but these days, when it is hard to earn more than a couple of percent on savings, and investments are shaky, a guaranteed return does not look that bad.

If you want lifetime coverage, and the ability to combine an asset with life insurance, than you may want to consider a whole life insurance policy as part of your coverage.