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Whole Life Insurance Benefits: 5 Advantages To Keep In Mind

Updated: December 9, 2017

Why do people get whole life insurance policies?

This is a question you must answer if you want to really understand the many whole life insurance benefits associated with these policies. You must decide if the monthly premium payments are worth the end benefit.

Whole life insurance benefits include taking care of loved ones, finding a permanent benefit solution, paying low premiums for great coverage and having your money grow through interest over time.

Whole life insurance is a good investment for a lot of people.

As long as you can afford the premiums, there are many advantages to keep in mind with life insurance.

Whole Life Insurance Benefits: Taking Care of Loved Ones

The main reason someone gets whole life insurance is because they want to take care of their loved ones.

There are many ways to provide benefits for your loved ones, such as term life policies or other insurance.

While it is important to care for your loved ones in an emotional sense, leaving them with a sizeable nest egg provides incredible financial security. Not only does it free them up to mourn your loss, but it ensures they do not have to worry about money for a little while.

There are many ways to provide benefits for your loved ones, such as term life policies or other insurance. But whole life insurance is the best way to ensure this protection is not going anywhere as long as you keep paying the monthly premiums.

A policy holder can decide who they want to name as their beneficiaries. It is possible to provide benefits for your spouse, children, siblings, parents or any other individual. It is important to name these beneficiaries in your policy to avoid confusion after your passing.

Whole life insurance is a reasonable way to give your family a substantial financial benefit when you eventually pass away.

Whole Life Insurance Benefits: Permanent Solution

A lot of people talk about the advantages of whole life insurance, but they still do not have a proper understanding of the difference between term life and whole life insurance.

As long as you keep paying your premiums, the benefit lasts until you pass away. This is the most permanent solution to providing for your family after your death.

Term life insurance is only for a fixed period of time, which is usually ten years. If you get a policy when you are 40, it will expire on your 50th birthday. It is possible to renew these policies, but often with higher premiums as you get older and your health deteriorates slightly.

In contrast, whole life insurance benefits mean you never have to worry about renegotiating premiums or a policy ever again.

As long as you keep paying your premiums, the benefit lasts until you pass away. This is the most permanent solution to providing for your family after your death.

While the premiums with whole life insurance are sometimes higher than term life, it is actually cheaper than term life insurance when you reach your 50s, 60s and 70s, because you probably got the policy at a younger age for lower premiums.

Whole Life Insurance Benefits: Low Premiums at a Younger Age

Getting whole life insurance benefits for a reasonable price is all about planning. If you only realize you need to get life insurance when you are 55 or 60, you may run into problems finding a cheap but good policy.

Getting a policy at a younger age also means paying premiums for more years, which makes it worthwhile for the insurance company to provide you with good coverage.

In contrast, someone who gets a life insurance policy in their 30s or 40s will find great rates for fantastic coverage. This happens because people are healthier at that age, which means they are a lower risk for insurance companies.

Getting a policy at a younger age also means paying premiums for more years, which makes it worthwhile for the insurance company to provide you with good coverage.

Another way to ensure you are paying lower premiums for whole life insurance benefits is to avoid as many unhealthy habits as you can manage. For example, smokers pay a lot more on average for whole life insurance than non-smokers.

The type of job you do may also impact your premium offers. For example, professional stunt-men probably pay a lot more for whole life insurance than accountants or financial advisors!

Whole Life Insurance Benefits: Peace of Mind

A lot of people will ask, is whole life insurance a good investment? It is difficult to answer this question until we know more about your circumstances.

Whole life insurance also means you do not have to worry about the policy ever expiring after the term is complete.

If you are someone who has a spouse or children, and you want to ensure they are protected in the event of your passing, whole life insurance is absolutely a fantastic investment. It will provide you peace of mind knowing they are financially secure after you pass away.

Not only do whole life insurance benefits pay for funeral and death-related expenses, but they can ensure your spouse and children do not have to worry about how they will pay rent or buy food in the weeks, months or years after your passing.

The last thing you want is for your spouse to end up having to work extra shifts in the weeks after your passing, because they no longer have your income to help pay the bills and take care of the children.

Whole life insurance also means you do not have to worry about the policy ever expiring after the term is complete.

Whole Life Insurance Benefits: Interest-Driven Growth of Money

When you invest your money in life insurance, you must remember that you are getting more than a simple benefit when you pass away. The money you put into the policy is going to grow with interest in a whole life insurance policy.

Even if the market tanks and the investments the insurance company made with your policy lose money, you are still guaranteed to receive the principal amount associated with your policy.

A long with the possibility of interest-driven growth, life insurance providers also offer a guarantee on the principal amount. This means that if you are paying for a policy with a $100,000 payout, your loved ones will never get a dime less than this amount when you pass away.

Even if the market tanks and the investments the insurance company made with your policy lose money, you are still guaranteed to receive the principal amount associated with your policy.

This is the type of guarantee no mutual fund or brokerage can provide.

Individuals with valuable whole life insurance policies are also able to take out emergency loans against this policy at very reasonable rates. This is helpful if you ever run into a situation where you need a quick injection of cash.