Whole Life Insurance Pros and Cons

Before we study the whole life insurance pros and cons, let us discuss what a whole life insurance policy entails. This is the most established sort of permanent policy to be found in the market. The ease of use as well as its stability makes it a popular alternative. Under the whole life insurance policy, you get permanent life insurance coverage throughout your life, generally till the age of 100. This policy does not lapse, provided sufficient premiums are paid each year for keeping it in force.

The premium as well as the death benefit quoted at the start of the policy remains almost same throughout. However, since the insurer invests your premiums, that policy can even accumulate cash reserves. The funds thus accumulated, may be used as premiums, saved or reinvested according to your choice. Apart from being a saving tool allowing you to create cash reserves on a tax-deferred basis, it offers stable insurance protection for a lifetime.

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