The Basics of Whole Life Insurance

Life insurance is an essential purchase if you have a family or if you plan on staring one. By having life coverage your loved ones will be financially protected in case you die unexpectedly. There are many types of life insurance. One of the most popular plans is whole life insurance. Make sure you read a lot about this type of policy and search for whole life insurance quotes before you buy a plan!

About whole life insurance

tumblr_me2eqyFGDL1ragi7h-300x199Whole life insurance is a policy which provides permanent life coverage in exchange for regular payments known as premiums. As long as you keep paying the premiums, the coverage will not expire and the policy will remain active guaranteeing a death benefit no matter at what age you die.

Besides permanent coverage, whole life insurance has an investment component which builds cash value overtime. A part of the amount you pay as premiums are directed into your policy’s account. After a certain number of years have passed (which are mentioned in the policy’s contract), you can withdraw money. Withdrawing money from your policy is tax-free as long as the withdrawn amount does not exceed the policy’s value.

Advantages of whole life insurance

Why should you buy a whole life insurance plan? Here are a few good reasons:

  1. It provides financial security for your loved ones. Your death can be a financial disaster for your family, especially if you are the breadwinner. By having whole life insurance you can provide financial security and possibilities to pay for urgent expenses like funeral, mortgage rates etc.
  2. Permanent coverage. By having permanent coverage, you will not have to worry about any expiration date. Also, you will live peacefully knowing that your family is secured at all times.
  3. Builds cash value. The savings component can be very useful if you ever find yourself in need of money. You can use the savings to pay for your life insurance premiums or other urgent expenses.

Before buying a plan, you should search and compare some whole life insurance quotes. You can do this easily by visiting our website. Visit us and find the best policies available!