The Advantages of Whole Life Insurance

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It’s possible that some life insurance plans may not fit most people. Some policies can be pricey and carry higher fees and commissions. One such plan is Whole Life insurance. Whole life insurance also known as permanent or ordinary life insurance provides cover to an individual as long as s/he is alive. While this type of insurance is much costlier than ordinary life insurance, it provides the insured a variety of benefits:

  • Whole life insurance includes an investment part which enables the insured to accumulate cash values.
  • Accumulated cash value can be withdrawn or borrowed in the form of a policy loan by the policy holder.
  • Permanent policy may also be used as an estate-planning platform. An insurance trust may be set up by the policy holder wherein proceeds of the policy will be applied to the estate taxes in the event of the policy holder’s demise.
  • The policy holder normally pays a level premium for whole life insurance which usually does not rise as the policy holder ages.
  • The insured has lifelong coverage with no future medical exams unless changes were made in the policy.
  • Ordinary life cover policy are advisable as a savings medium for people who have income left over on a regular basis after maxing out their other tax-deferred accounts.
  • Permanent life policy will prove to be the better option for older people because term life insurance gets much costlier as the policy holder reaches 60 years of age.
  • Whole life insurance cover policy can earn dividends. Dividends results when actual life insurance costs turns out to be less than believed in setting the premiums.

Buying a life insurance may be one of the most important purchases you will ever make. However, it is important to educate yourself about the various type of life insurance policies out there and finding out which type of policy suits your needs the best.


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Tina Lee-Almazar | Tinaciouslee

Tina Lee-Almazar is a writer and editor based in the Philippines. She holds a Bachelor’s degree in Broadcasting from Centro Escolar University in Manila. She started out as a production associate at ABS-CBN Broadcasting Network in 2004 before transitioning to creative writing in 2006. Her years of experience as a writer resulted in having considerable knowledge in a variety of writing fields. When she’s not surrounding herself with pretty things or discussing herself in the third person, Tina watches funny cat videos all day.

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