Advantages Of Whole Life Insurance Policies

Author: Donald Lusan
Source: articleage.com

When you consider the advantages of whole life insurance
policies I hope you will conclude that this is life insurance
worth owning. I have no objection to term life insurance and
even owned some when I was much younger. Each type of policy has
it’s place and it’s own function. I cannot, for the life of me,
understand why some people never have appreciated this. I refer
to the term advocates who seem to hate the thought of buying a
whole life policy.

The First Of The Advantages Of Whole Life Insurance Is The
Death Benefit

The whole life insurance policy assures you a guaranteed death
benefit that never decreases and upon death is usually free of
federal income taxes. If you choose you may take the death
benefit in the form of a monthly income instead of a lump sum.

The Premiums Remain Level; Another Of The Advantages Of Whole
Life Insurance Policies

When you buy a whole life policy the premium you start out with
is the premium you will always pay. It never increases. If you,
however, decide to use your dividends to reduce premiums you
will pay a much lower premium than you contracted for.

Whole Life Insurance Policies Have Cash Values

Another of the advantages of whole life insurance are the cash
values. They can be borrowed by the policy owner for whatever
reason he or she should choose. If you should decide to
surrender your policy at any time you receive your cash values.
These cash values accumulate tax deferred.

Participating Whole life Insurance Policies Earn Dividends

If you own a participating whole life insurance policy you
automatically become eligible to earn dividends on your cash
values if the company performs well, which they usually do.

These dividends can be paid to you in cash, can be used
to purchase paid up additions, to reduce premiums
or they can be left to accumulate at interest.

Certainly these are worthwhile advantages of whole life
insurance. There are many, many more…