Whole Life Insurance : Why Do You Need it?

By the time you finish reading this, you will be equipped with the knowledge about insurance. Well the first thing to note is that there are two major types of life insurance- whole and term.

However, we will discuss more about whole life insurance. What exactly is a whole life insurance? A whole life insurance is bought on a permanent basis and the insurance remains in effect until the pay out of the policy.

The policy will pay out upon the death of the insured or upon an event as specified in the policy.

Have you ever thought of the benefits? Well below are the benefits of a whole life insurance over term life insurance.

Guarantees

There is something that a whole life insurance can offer which term life insurance can’t. It is stability. Whole life insurance carries stable premiums, a guaranteed pay out and guaranteed coverage.

Another important thing that whole life insurance can offer you is that there are no limits as to time and often the pay out can occur before death.

Cash Value

If these benefits do not seem attractive enough you should read on. One of the greatest benefits a whole life insurance policy can offer you is cash back. What is cash back? This means you can borrow against the money or even cash out early.

This is considered one of the best policies because you cannot get that with term life insurance as there is no cash value.

However, if you borrow a certain amount from the policy you bought, you may not need to pay back but this means that the final pay out will be less the loan amount.

Flexibility

Most whole life insurance policy is very flexible. You can alter the benefit amount and change things according to your needs as years go on.

Additionally, because the policy carries cash value that you can cash out with at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.

However, whole life insurance is not for everybody as the premium are higher but it is the best option for people that needs a secured future for their family.

Life insurance is something that anyone with dependents and people who rely upon them should look into purchasing. It can give you the comfort because you will know that your loved ones get the pay out upon your death and that can help immensely in such a trying time.

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