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Home > Life Insurance > The Pros and Cons of Whole Life Insurance - How to Know If It's Right For You The Pros and Cons of Whole Life Insurance - How to Know If It's Right For YouAuthor: Ryan Richardson Life insurance can be a very valuable investment. Think about the financial issues your family would be left to struggle with if you were to pass away prematurely. Securing your family's financial future is very important but there are several different types of life insurance available in selecting the one that's right for you can be difficult. In this article we're going to briefly go over the pros and cons of a whole life insurance policy to help you determine if it would be something that would be suitable for your situation.The pros: 1. It never expires. A whole life insurance policy will be in effect for the rest of your life as long as you remain current on your monthly premium payments. You never have to worry about the policy expiring and leaving you uninsured. 2. It builds cash value over time. A whole life insurance policy can be used as an investment vehicle because it builds cash value as the years go by and you make your monthly payments. The cash value grows tax-deferred and the policy can be borrowed against if you ever find yourself in a situation where you need some quick cash. 3. Tax benefits. As the cash value grows in your policy the value increases but you do not have to pay income tax on the money until the money is taken out or the benefit is paid. The fact that a whole life insurance policy never expires, builds cash value, and has certain tax benefits makes it good for people who want to leave a nest egg for children or grandchildren. It's also a good choice for someone that has substantial assets such as a business or substantial real estate holdings. The cons: The one significant drawback to a whole life policy is the fact that it is far more expensive than term life. A term life policy is a lot less expensive but it doesn't have the same type of benefits. It does not build cash value and it has an expiration date at which point you would no longer have coverage. Whole life insurance will be more expensive than term but if you shop around a little bit you can find a good deal. There is a lot of competition between the various insurance companies and a bit of time spent doing some comparison shopping will reveal an opportunity to save a substantial amount of money. For a list of highly rated life insurance companies in your area or to get more answers to any questions you might have Click Here! Other Recent Insurance Smart Book Articles:
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