Life Insurance serves a vital purpose. The life insurance provides financial security for the family and makes it possible for the family to continue with their lifestyle and maintain the same standard of living after the insurance policy holder dies. There are few different types of policies when it comes to choosing a suitable kind of plan. This becomes difficult for some people to compare the benefits they offer. In this article, we will go over with whole or permanent life insurance and find out what it has to offer for you.
Some believe that whole life insurance is far better than term insurance policies. Of course, it is always vital to discuss this matter with a licensed insurance agent. Still, it is a safe bet that whole life insurance has far more advantages. Let’s take a closer look at a few of those advantages.
One of the most attractive things associated with whole life insurance is the fact that the insurance offers protection for a lifetime. The premium will never go up, and the coverage does not change during the term of the policy. This gives an extra level of security to the policyholder and the family.
Of course, whole life insurance provides death benefits to the family. The insurance is also attractive because it has a cash value while the policyholder is still alive. The policy value builds up over the years. The insurance provider will allow the policyholder to borrow money from the insurance policy too. This will help build financial security for the family in the long run.
Here is something else for the family to consider. The whole life insurance policy is tax exempt. The policy builds up cash value over the years too. If the policyholder is ill, they can draw money out of the insurance for living expenses. The family can use the extra cash value to pay off expenses or supplement their income. Other insurance policies, like term insurance, do not have the same benefits.
Whole life coverage still has some disadvantages. This type of plan is quite expensive compared to term or burial insurance. Also, not every local provider offers such plan to the customers. So, the availability and flexibility are less with permanent life insurance. For the seniors, this type of policy can be more flexible as this is tough to avail term policy after the age of 80.