Why Whole Life Insurance Policy Is Better Than The Term Life?
In most cases there are several compelling reasons to purchase whole life insurance policy over a term life or any other types of life insurance policy. First, a whole life policy provides insurance protection for your entire life as long as the policy is in force. This means that you will be leaving behind money for your family to cover any final medical bills, funeral expenses, estate & income taxes and outstanding debts, and a bequest to your family and/or favorite charity while in most cases your term insurance will EXPIRE before you EXPIRE leaving no death benefit for your family or your favorite charity. Second, you can lock in your premiums at your 'age of insurability'--your age when you buy the policy. With term insurance, since you will more than likely have to renew the policy at the end of the specified term, your premiums will go up substantially every time you renew. This is because the older you become, the higher your 'mortality cost' to the insurance company. The insurance cost will be substantially cheaper in whole life insurance than term life policy over the long term period. Even though you pay very minimal premium in term insurance policy but you will most likely going to outlive your policy as per industry statistics around 1% term life policies are being paid out as a death benefit. Third, there is a savings element to whole life policy that grows called the policy's 'cash value' or life insurance cash value. This life insurance cash value has several advantages. It can be used for emergencies as well as long-term goals, such as college savings or retirement savings in a most tax efficient way. You can access this life insurance cash value free of income tax up to cost basis and remaining in a form of policy loan. If you decide to cancel the policy before you pass away, the life insurance cash value savings is available to you income tax-free up to the cost basis of the policy. Fourth, the life insurance cash value build-up inside a permanent life insurance policy like whole life insurance is creditor-proof in most states. If you are at fault in a car accident or any similar incident in which someone is injured or killed, and they or their family sues you, most of your assets can be taken. However, the cash value inside your whole life insurance policy is protected by law. The same goes for divorce and bankruptcy litigation in most states. While every type of life insurance policy has advantages and fulfills a functions toward reaching your financial and life insurance goals, there is one policy that can play many roles. The current economic environment has created a demand for asset with a very decent rate of return, contractual guarantees and the advantage of tax-deferred growth. Whole life insurance is this wonderful asset while you are alive and guaranteed financial security for your loved one when are long gone. Please call one of our life insurance specialists at (866) 972-3262 to understand whole life insurance and term life insurance and complete life insurance quote request form to compare whole life quote and term life quote now.