Whole Life Insurance Advantages - Standard Life

Are There Advantages To Standard Whole Life Insurance Policies?

The name of this website is: term vs whole life insurance, so….

It seems like most of the ads we see for life insurance polices are for term life. And the mantra of many top financial advisors has also been to encourage their clients to choose term because it is cheaper. They tell their clients that they will be better off by investing the difference in other financial products. There is some truth to this, but it is only part of the story.

So you may be asking why anybody still buys whole life. It costs more, your financial analysts promises better returns elsewhere, and “everybody” is buying term. But please consider some advantages of whole life before you make a decision.

People Consider Whole Life Because…

• Whole Life Does Not Expire. As the name implies, the policy can cover an insured person for their entire life. Term, of course, only lasts for the term length of the policy. Of course, insurers carefully underwrite these policies so they reduce the risk of them actually having to pay a death benefit before that period of time is up. So if a policy is paid up or paid off it should actually stay in force until the insured person does pass away. This way the beneficiaries can actually collect the death benefit.
• Whole Life Can Build An Asset. A cash value policy can actually be worth something, apart from the insurance. This cash value can be an asset that can be borrowed against or cashed in. Another use for cash value life is to sell it in a senior life settlement that may help the insured person financially while they are still alive. In a senior life settlement, an investor will actually purchase the policy for some percentage of the face value. This amount will probably be more than the actual cash.surrender value or the policy.
• Tax Advantaged Estate Transfer. The proceeds from life insurance policies are usually not taxed. That means that the beneficiaries can get cash from them without having to pay more taxes. This is one reason that they are attractive. They can be used to transfer wealth. They can also be used to settle businesses if some heirs will inherit the business, but some will not. The ones who will not run the business can inherit some cash to compensate them through a death benefit.
• Safe Money. Insurance companies are highly regulated. States have plans to cover policies in the event a company does go under. The actual returns on these policies may not be that bad when you consider recent stock market declines, tax advantages, and the safety of the money. Plus, you are also getting your life covered.

Should You Buy Whole Life or Term?

There is never one correct solution for everybody. A lot of times, term is the best choice. The best choice for you really depends upon a variety of factors. Your own financial goals, budget, and expectations must be considered. Just make sure you buy a policy that is in your own best interest, and not in the best interest of your financial advisor or insurance agent.

The intent of this article is only to make you stop and think about some advantages of whole life before you buy insurance.

We Make It Easy To Compare Life Insurance

Before you buy, take a few moments to get standard whole life insurance quotes. You can compare them to the cost of term life insurance. This is a simple, safe, and free way to compare life insurance!

Article Source: http://EzineArticles.com/?expert=Marilyn_Katz
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