We can all agree that life insurance is something that everyone should look into, but is whole life insurance the type for you? Like with most things in life, there are positives and negatives. It is up to every individual person to decide on their own whether one outweighs the other. So in this, we are going to describe the positives of getting whole life insurance; as well as the negatives.
So let’s jump right into it.
- Your beneficiaries are covered for life. This is a strong thing to consider. For most people, having whole life insurance gives them the comfort in knowing that they do not have a time limit and if anything tragic should happen, at any time, their beneficiaries will be covered. When trying to decide between term and whole life insurance, one must surely keep their beneficiaries in mind.
- Cash Value. The fantastic advantage of whole life insurance is that it doubles as an investment. If no one has to file a claim, then the money that is paid every month isn’t wasted and can be used as cash value. This is one of the prime advantages of whole life insurance, especially for the worrisome person that doesn’t want to waste their money.
- Additional investment and savings vehicle. For the lucky ones that have such a high income that they maxed out their tax deferred investments, then whole life insurance is definitely something to look into as an additional investment and savings vehicle.
- The Cost. The price of whole life insurance premiums is much higher than term life insurance premiums. This is especially important for the budget cost individual, such as young people just starting out their careers.
- May not need it. Of course there is a chance that in the end, you may never need it and you could come away wasting money throughout your life. However, it’s usually better to be safe than sorry with these kinds of things.
- Depending on your insurance company, investment options may be minimal. Some insurance companies do not have a wide range of investment options.
In the end, it is important to decide on your own if whole life insurance is really right for you and your family. So do your research and discover which one yields the most benefits for you and the people you may leave behind.