Traditionally, there were two major types of life insurance – term life insurance, which only provides a death benefit for a set number of years, usually between 10 years and 30 years, and whole life insurance. These days, there is an ever-increasing number of different types of life insurance, like universal life insurance and variable life insurance. The options can feel overwhelming, but there are still plenty of good reasons to consider a straightforward, traditional option like whole life insurance.
The number one reason to choose whole life insurance in the peace of mind you get in knowing that it will provide a death benefit that can help cover your end-of-life expenses, leftover debts, and other needs that your family may have after your passing. Regardless of changes in health status, your insurance policy will remain in effect as long as the premiums are paid.
Another reason to consider whole life insurance is the potential savings component. These types of policies can accumulate cash value in a predictable manner because you have guaranteed returns in the form of accumulating interest. This cash value account grows with deferred taxation at a steady rate. It is generally protected from the potential ups and downs of the market. This cash value can be borrowed against, although you will generally have to pay taxes on withdrawals. This cash value can provide another form of peace of mind.
Whole life insurance is not right for everyone, but it is still a solid option for many people. Contact us today to set up a meeting to discuss your unique insurance needs and budget.