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 own some. It is an important part of my life insurance portfolio.
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 anyone buying a whole life policy.
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Some Of The Advantages Of Whole Life Insurance
- The First Advantage Of Owning 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 Advantage Of Owning 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. Dividends, however, are not guaranteed.
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.