Benefits Of Whole Life Insurance Policies

Do you have whole life insurance policies? Have you considered the difference between term and whole life insurance policies?

What are the benefits of buying whole life insurance policies? Are whole life insurance policies better than term life insurance policies?

Whole life insurance policies are more expensive than term life insurance policies when you compare the insured amount.

The reason is that whole life insurance policies have cash value. That means you can borrow from the whole life insurance policies when you need money. When you surrender the whole life insurance policies, you can get cash back.

Whole life insurance policies provide coverage up

to your death. If you manage to live to a very old age, you can rest assured that the whole life insurance policies are still in force.

However, term life insurance policies do not have cash value. Term life insurance policies do not have surrender value. The minute you stop paying the premium, the policy will lapse.

Term life insurance policies usually cover the span of your working life. That means when you retire, you cannot rely on the cash value of the insurance policies to provide for a retirement nest.

Should you buy whole life insurance policies or term life insurance policies?

You should buy whole life insurance policies unless you are a very shrewd investor.

Most of us do not know how to manage our excess fund for better returns. You are more likely to use the money to buy whatever you want to eat, or luxuries. You are likely to use the money to pay for an exotic holiday.

If you buy whole life insurance policies, you need to pay much more in premium than


term life insurance policies.

That means you have less disposable fund for use. If you are one of those without saving habit, you can treat whole life insurance policies as your saving and investment.

It is best to get different whole life insurance policies from different insurers. You can surrender one policy when you retire. You can treat it as your retirement nest.

The best thing about whole life insurance policies is the cash value. When you lose your job, you can stop paying the premium and ask the insurer to use the cash value to keep the policy in force.

That will ensure that you get the protection you need even when you cannot pay for it.

Many people buy riders attach to the whole life insurance policies. If you stop paying the premium, you can use the cash value to pay for the coverage of the riders too.

If you are rich, and you can get a 20% return on your investment, then getting whole life insurance policies is not a good idea.

If you are rich, getting a term life insurance policy is a better choice.

About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.  



Article Written By scheng1

Last updated on 28-06-2016 76 0

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