There is no shortage of life insurance policies available. Finding the right one can be challenging if you do not understand the options. One primary point of confusion is the differences between term and whole life insurance. Each offers tremendous value for the policyholder. However, here are a few major benefit of whole life insurance.
Whole life insurance offers a level of stability that other policies do not. Your premium will not change at any time. The rate you pay today is locked in and will never increase. Most term life policies increase over time.
The truly unique characteristic of whole life insurance is that it acts as a sort of savings account. A portion of your premium is saved and you have access to those funds while you are still alive. This amount typically increases every year that you keep your policy because you are continuously paying into the account with your premiums. Term life insurance offers no such option. You pay your premium and it disappears.
Your whole life policy is guaranteed for the extent of your life. The value of the policy will not decrease or lose value. Regardless of age, illness, or any other life event, your policy is always guaranteed. It is very difficult to purchase a policy once you become ill. So, having one guaranteed and in place before these unfortunate circumstances occur is extremely wise.
There are a few other more detailed benefits regarding finances. Things like taxes and combining assets which should be discussed with your financial advisor. Remember, the beneficiaries of your insurance policy will receive the funds tax-free. That alone is a great reason to have a life insurance policy.
For more information about insurance policy options, contact us. We are happy to assist.