Overview on whole life insurance
Whole life insurance covers you for your entire life while building cash value at the same time. The accumulation of cash value can be used for emergencies or temporary needs. Whole life insurance is expensive compared to other types of life insurance. There is also less flexibility in premium payment and the death benefit is a fixed amount.
The most common features of whole life insurance include: death benefit, tax deferred cash value growth, level premiums, pays dividends, payable for life.
Whole life insurance offers several choices including single-premium, interest-sensitive and traditional whole life insurance policies. Whole life insurance has many benefits. Unlike term life insurance, a part of your premiums goes toward the cash value. The best part about whole life insurance is that you will be creating an investment fund and your beneficiaries are certain to obtain the insurance payout. This way you get security for your whole life. Other advantages include: protection from creditors and disciplined saving.
When purchasing life insurance it's best to ask a qualified agent to explain whether a policy is really guaranteed whole life. You can also choose between the many variations of the whole life policy such as: variable life insurance, variable universal life insurance, universal life insurance, indeterminate-premium whole life insurance and current assumption whole life insurance.