Pros and Cons of Whole Life Insurance

April 19, 2012

Healthy Life, Insurance

 

Pros and Cons of Whole Life Insurance

Pros and Cons of Whole Life Insurance

While choosing from an insurance policy there are a number of options. There are whole life insurance policies that last for the entire life of the insured person. There are term life insurance policies that end at a particular term and provide particular coverage to the insured person. There are variable term life insurance policies that have variable amount of premium that changes throughout the term of the policy. In this article we are going to review the pros and cons of whole life insurance as compared to the other life insurance policies.

It is a general view that the whole life insurance is expensive as compared to the term life insurance and does not provide value against your money. However one of the major benefits of the whole life insurance is that the premium rate is guaranteed throughout the life of the insured person. This means that the premium rate will remain constant throughout the policy and will never change. The premium will remain constant irrespective of your income, rate of inflation or any other financial changes in the country. Whole life insurance guarantees a cash return on the expiration of the policy. This means that you will have a definite amount of cash in your hand after the expiration of your whole life insurance policy. Moreover whole life insurance is irrespective of taxes and no taxes are exempted from your money. Whole life insurance is one of the best means of financial assistance for your family in the case of your death in some sudden circumstances. This means that the policy will assist your family in financial matters under some uncertain circumstances. The cash value of the policy will help your family to pay off your debt, mortgage, medical bills or the college tuition of your children.

In addition to the advantages the whole life insurance has also some disadvantages associated with it. One of the biggest disadvantages associated with the whole life insurance is that there is no flexibility associated with the amount and the schedule of the premiums. No matter how hard you are struggling to make both ends meet you have to pay the exact amount of premium on exact time. If you are unable to pay the premiums within the time limit the company will charge the amount of premium from your coverage that is the cash value of the policy.

Internet is the easiest way to get the entire information about the whole life insurance before finally purchasing the policy. You can search the Internet to find out the information about the whole life insurance deals in your area. For example you can search for Alabama life insurance information to get the complete information about different insurance companies offering whole life insurance to their customers.

Pros and Cons of Whole Life Insurance


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