Whole life insurance nowadays is most popular and established deal in the market. ts stable nature and ease to use is making this policy popular day by day.
I have to tell you something interesting, if you want to know whole life insurance pros and cons, you come along with me.
Before I explain you about the whole life insurance pros and cons, tell me; Do you know what actually is whole life insurance? Tell me? I think you gotta idea about that but you don’t know completely.
Not talking much, Let’s have a discussion in detail.
What Do You Understand By Whole Life Policy?
A whole life gives you a complete shelter. Whole life insurance covers you the death benefits. Good news is that it doesn’t cover you the death benefits only but also has additional benefits called cash value accumulation component.
The part of the premium that you pay goes towards the cash value accumulation slice.
This is a kind of whole life investment. This is a kind of interest bearing account so that the cash value builds over the life of the policy. Which grows along with the interest.
Well! Well! Well! I think you got the idea about the whole life insurance. Now, I am gonna explain you the whole life insurance pros and cons.
Pros Of The Whole Life Insurance
- The main advantage of Whole life insurance is that it is the permanent one.
- The whole life insurance policies are guaranteed for the lifetime.
- Premium insurance policies go up from one level to another level.
- As long as you pay your premiums, you will receive the benefits till your last breath.
- Whole life insurance guarantees you the death benefit as well as the premium.
- Whole life policies offer you life benefits, whole life insurance does not build any cash value. So, it can be said that it is a form of savings with highly competitive growth and offers you the tax advantage.
- You never assign for life insurance policy by thinking you are going to cancel it. But if you want to cancel it due to some reason. Then you are done.
- I mean, if you wanna cancel then you can.
- When you cancel a whole life policy; if there is any cash value, your value will be returned- so that you will have something to show for all those premium payments that you have already paid for.
- It is there with all whole life policies that if you want to stop paying premiums at any point, then, you can convert your cash value to paid up policy.
- Paid-up means you don’t have to pay any cash further.
- Whole life insurance policy premiums never increase. This is for sure for whole life.
- The whole life insurance builds up the cash value and hence the multiplication of your cash value is for sure. It is guaranteed.
- Whole life insurance policies assure about the death benefit value along with the premiums.
- Whole life insurance policies offer a long range of premium value.
I think you have got the clear cut idea about the pros of whole life insurance.
Cons Of The Whole Life Insurance
- Let me tell you one fact about the cons of the whole life insurance. You know that owing to something is always difficult than renting it. Keep this thing always in your mind.
- Whole life insurance has the higher premium than term life in the early years.
- The premium policy gets increased at the renewal time whereas whole life remains at level.
- Whole life insurance has a higher level than the term life.
- The whole life cash value is guaranteed, might be less than the growth of investment lacks guarantee.
Is That Whole Life Insurance Policy Good For You?
Yes, the whole life insurance policy is good for those who have the interest in investments. But if you don’t desire for a permanent policy, a term life insurance is the better option for you.
On the other hand, if you desire for permanent shelter but with more control over the cash, the variable life insurance is in favor of yours.
Now, you have to decide what you want actually?
What You Have understood?
I have discussed with you about the whole life insurance pros and cons. I think you have understood the facts which I wanted you to know.
Go through these pros and cons before you buy any whole life premium for you. You will be benefited. After all, it is your money! Only and only you have right to invest it.
Whenever you are going to make any investment, go through all condition apply at very first. You compare the policies with the other offered policies, then you decide what you are actually looking for.
Become aware first, then invest!
If still, you have queries, Ask me. I am there to answer you.