Reasons to Get a Whole Life Insurance Policy 

At some point or other in your life, you will probably consider buying life insurance. One of the most recognizable is a whole life policy. Though there are many more specific types of whole life policies, their basic principle is that they last for the remainder of your life once you enroll. Therefore, these are often diverse and convenient financial solutions for those who want the assurance of a life insurance policy for the remainder of their lives. 

Often, when compared to the other primary type of life insurance (term life insurance), a whole life policy is the more expensive of the two. However, it offers a diversity of benefits that term policies do not, and therefore opens up more possibilities for you to use your policy in unique ways. Let’s take a closer look at some of these. 

You want your life insurance to provide an appropriate payout to your loved ones or survivors in the event of your death. A whole life policy can not only allow you to choose a death benefit of significant value, but also to last indefinitely.  

Because whole life policies last for the remainder of your life, then your chosen death benefit can go towards a number of purposes. You can often choose a high enough benefit to meet any particular needs that might arise both now and in the future. 

Unlike term life policies, whole life insurance does not last only for a set number of years. Therefore, you never have to worry about whether the term of your policy is approaching its end. As long as you can continue to pay your premium, your policy will remain in place whether you die at 35 or 80. 

Most insurers recommend that applicants buy life insurance early. That’s because the younger you are when you first enroll, the lower your risk of death and the better your overall health. Since you likely will have to undergo a medical exam before an insurer will approve your policy application, both of these often make you less of a risk to the insurer. They are more likely to offer you a lower overall premium.  

Generally, a term life insurance policy will offer only a death benefit upon the insured’s death. However, whole life policies can take this benefit a step further. They will still provide a death benefit, but they can also offer the investment opportunity of cash value accumulation. 

With a cash value benefit, a portion of your policy’s premium will act as an investment. As this investment accumulates returns, you can begin to build a savings account around it. While you are still alive, you can often draw upon this cash value account for a source of income.