Pros and Cons of Whole Life Insurance
If you are considering purchasing a life insurance policy, you might be thinking of purchasing a whole life insurance policy. While whole life insurance policies have many benefits to offer to their policyholders, there are some potential downsides as well. Therefore, it is important to explore the pros and cons of whole life insurance in order to determine if this is the right type of policy for you.
The Pros of Purchasing a Whole Life Insurance Policy
Perhaps the greatest benefit to purchasing a whole life insurance policy is the fact that your benefit and premium will never change. Once you are locked into a policy, you can count on the premium remaining the same. In addition, you already have a policy in place so, as you get older or if you become ill, you don’t have to worry about being denied coverage.
Another benefit to purchasing a whole life insurance policy is that it not only provides your loved ones with financial protection if you should pass away, but it also acts as an investment. As your whole life insurance policy grows in value, you can borrow against it if necessary. In addition, the interest that your whole life insurance policy builds is interest free. Since professional investors handle the funds in whole life insurance accounts, you can count on the funds to grow.
The Cons of Purchasing a Whole Life Insurance Policy
Just as there are several pros associated with purchasing a whole life insurance policy, there are some potential downsides as well. For example, whole life insurance policy premiums tend to be far more costly than the premiums associated with term life insurance policies. For more information on term or whole life insurance click here. Furthermore, whole life insurance policies do not offer the same payment and benefit flexibility as universal life insurance policies. At the same time, if you are looking for a permanent life insurance policy that is low-maintenance, a whole life insurance policy is the way to go.