Whole Life Insurance Benefits

By Compuquotes Team on March 26th, 2008

Whole life insurance is a type of life insurance that can benefit just about anyone. Whole life policies are usually taken out by the main breadwinners of the family because they promise to give a lump sum to your beneficiaries in the event that they died.

Whole life insurance offers full life coverage as long as you pay your premiums each month. Whole life is very different from term life insurance which is a type of life insurance that only pays out if you were to die during the policy, however if you outlive the length of the policy you receive nothing except a renewal letter.

Whole life insurance policies tend to be the most expensive policies on the market simply due to the fact that they accumulate cash value over the years. If you have the money to invest than whole life insurance is the way to go. People tend to go with the cheapest policy they can get their hands on, although generally it doesn't cover their needs.

One of the great benefits that you get with whole life insurance is that your death benefits will never decrease and your premiums will never increase. Compare this with a term life insurance policy which has a rate that increases with each renewal, if you are even able to renew your policy.

If you have decided that you should invest in a whole life insurance policy then the first thing you should do is imagine how your financial situation would be if you died today. Calculate the amount of money you own on your mortgage, vehicles, credit cards, and any other outstanding debts that you need to pay for, not including your children's college tuition or any emergency money. Figure out if your family would be able to survive without your extra income, if they could manage it would likely be a financial struggle.

If you purchase a whole life insurance policy your debts will be paid off when you die and you may even be able to provide a substantial amount of money to your beneficiaries. Not only are you providing your family a secure financial future when it comes to your personal loans and bills, but you are also able to benefit from your policy while you are still alive.

You can use the cash value you have accumulated in your policy to use as collateral and take out a loan. This is like a savings account that has major benefits for your family if anything bad were to happen to you.

Many people think they are too young and healthy to need a whole life insurance policy but that is the perfect time to buy one! The younger you are the cheaper your policy will be, and you never know what could happen. So you are getting a tremendous amount of coverage for the lowest possible price, it can't get much better than that.

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