Advantages Of Whole Life Insurance
July 6th, 2008
As opposed to term life insurance where you are only insured for a select period of time, in whole life insurance you are insured for the duration of your life span from inception until death or usually until you reach 100 years if you get that far. You have standard fixed premium and a growing cash value from your investments. This is like having a savings account that is invested on your behalf and grows as your investments do well. On top of this one of the key advantages of whole life insurance is that this growth in your cash value will not be taxed. So you are technically earning more without Uncle Sam dipping in.
Whole life insurance also carries the benefit of a minimum guaranteed death benefit and the minimum interest rates are adjusted annually. Ensure you can afford this insurance before you purchase it. This policy is for the long term, try to get as much cover as you need now while you are younger for the long term benefits later on. The longer this policy is in force the larger the death benefit will be. This policy is designed to last as long as you do.
Entry Filed under: Miscellaneous