The Pros And Cons of Whole Life Insurance

If you ever had the courage to enter in the life insurance online blogosphere, you have surely witnessed the intense debate between the supporters of each side. Some of them favor term life insurance, others whole life insurance, while others favor universal or variable universal life insurance.

Concluding their first vehicle purchaseThere are many types of insurance and sometimes it is hard to decide which one is better for you. It is commonly accepted that whole life is the best form of permanent life insurance. In our blog we will analyze the pros and cons of whole life insurance.

First, let us start with the obvious benefits. It is permanent and you will not have to worry about periodically renewing the policy.  That reduces all stress and hassle given by filling in paperwork. Premiums are locked at the same value and will not increase, even if you get sick while under coverage.

Another great benefit is its cash build component. In time, this component will become very valuable and useful and will allow you to extract a part of the money. The investment component is another great benefit and if all investments are profitable, you will gain some money.  Some features are unlockable after several years of payment. The most important one is borrowing against policy. And, to top it all, everything you save and will be received by your beneficiaries, is tax-free.

Now, let us talk about the cons. There are not that many, but they are very significant. Premiums are locked at the same level, but they do not start with a low value, like in the case of term life.  If you do not regard it as a long term investment, whole life might seem expensive. Also, age and health are very influential criterions. If you apply when you are sick or old, you will have to pay very expensive premiums.

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