When you are thinking about life insurance, the number of options can make it complicated. While any type of insurance can be useful, there are some important reasons to consider whole-of-life insurance.
Cost And Coverage
The cost of whole-of-life insurance is usually more than the alternatives, but it can be worth the extra cost. Your policy will remain in effect as long as you pay your premiums, and your premiums will not increase. The policy will not expire when you are older, so you will not need to buy another policy.
You can look at your whole-of-life policy as an investment. If you hold the policy for the rest of your life, the beneficiary you have chosen will receive a lump sum for the full value of the policy. This payment is tax-free.
However, your policy will build up cash value if you need to use it yourself. One advantage is the ability to borrow against your policy without losing the policy.
A second advantage is the ability to cash in your policy. Although you will not receive the full face-value of the policy, it can be in your best interests to have an insurance policy that has this option.
No one knows what the future may hold. You may find yourself in a position of needing cash, but do not want to take out a loan or borrow from loved ones. It is good to know you have a cash reserve in your life insurance policy.
Everyone needs life insurance. When you are trying to decide on an insurance policy that is right for you, consider your needs and your budget. You can find a whole-of-life policy that is affordable, and will cover all of your needs. It will provide the security you want as you grow older. You can purchase a policy with confidence, and have peace of mind.