Advantages of a Whole Life Insurance Policy And Why You Need It

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Advantages of a Whole Life Insurance Policy And
Why You Need It
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• Whole Life Insurance policies
  are more expensive than the more popular Term
  Life Insurance policies but with the extra
  expense comes additional options that make Whole
  Life policies more attractive to many consumers
  when compared to Term Life policies. The most
  glaring advantage of Whole Life Insurance,
  besides the lack of expiration date, is the
  ability of the insured to take out a loan with
  the cash accrued by the policy, so long as the
  premiums are kept up to date, the policy and its
  advantages do not expire until the insured does.
  The term life policy, however, can expire before
  the death benefit is paid out, thus leaving the
  previously insured person in a position of
  attempting to find a new policy or renew the
  other policy at an older age that brings with it,
  higher insurance premiums.

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• Whole Life Insurance policies carry with them
  additional features that are hard for some people
  to resist, as well as beneficial riders that most
  people deem necessary for extra protection for
  their loved ones. The most popular riders added
  to the whole life policies are accident benefits
  and accrued benefits in the case of disability.
• It is true that whole life insurance is more
  costly that term life insurance, but its premium
  is the same throughout life, as the policy is
  guaranteed throughout the insured's life as well.
  Term life insurance might be cheaper for the
  first term, maybe twenty years for a policy, but
  then the renewal will base the insured's new
  premium on their new "older" age and mortality
  bracket. If at this time the consumer decides
  upon a whole life policy at this older and wiser
  age, the premium will be phenomenally more than
  it would have been for the same dollar value
  policy twenty years earlier.

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• In the end, the consumer ends up paying thousands
  of dollars more in the long run, having to
  purchase a more expensive life insurance policy
  later in life, and additionally, he or she does
  not have the extra twenty years of savings and
  investment income from the whole life policy. So,
  ageing might bring with it wisdom, but it also
  brings higher insurance premiums as well. In the
  case of whole life insurance, it pays to do a bit
  of research in order to make the better choice
  the first choice.

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• Those opposed to whole life policies will use the
  time honored saying, "Keep Insurance and
  Investment Insurance Policy Separate!" However,
  as good as this idea may seem, it does not go on
  to explain that the consumers are expected to use
  the money they save each month with the cheaper
  term life premium and use that "extra" cash to
  invest and make money by investing themselves.
  First, a person must be committed to take an
  amount of money that is touted as "extra" and
  invest it each month in whatever they see fit.
  Second, in this time of financial hardship,
  people who are short on "extra" money might not
  really have the excess to invest, and probably
  wouldn't know where to start when it came to
  investments and stock portfolios and the like.
  So, it might cost more in the beginning, but the
  whole life insurance carrier knows how to invest
  that "extra" money the insured consumers so
  willingly pay into their future and their
  families' future every month. Leave investing to
  those in the loop and remember it is always
  easier to do things right the first time!
• Article Source http//EzineArticles.com/6950519

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