Whole Life Insurance

In simple words, the insurance term "whole life insurance" is a permanent form of life insurance which covers you for your entire life. OK...that's simple enough to understand, but of course there is much more to this type of life policy. Let's take a closer look at some of the features of whole life insurance.

Policy Death Benefit

A whole life insurance policy has a set death benefit that doesn't decrease over time, unlike term life insurance, which is good for a specified period of time only. In addition, there are no federal or state income taxes due against the proceeds of the policy paid to the beneficiary.

Level Premiums

Whole life premiums remain the same for the life of the policy. Whether you're 25 or 65, the premium stays the same at the time you purchase the policy. This is unlike term life insurance which increases the older you get. By using any policy dividends you can actually reduce the premium costs.

Cash Value

One of the best life insurance aspects of a whole life policy is that it will accumulate cash value over time. This cash value increases over time as you continue to pay your premiums. If you later surrender the policy you will receive the total amount of cash value policy built up. You may also take a loan against the policies cash value at a very low rate of interest. Another important point to note is that the cash values accumulate on a tax deferred basis. This is a huge benefit and makes whole life one of the best life insurance policies you can get.

Dividends

When you purchase a whole life insurance policy you are eligible to receive dividends from the company. You have some options in using these dividends. They include the ability to take them out as cash, use them to purchase paid up additions, or use them to reduce your policies premiums.

The advantages of whole life are numerous. For whole life insurance quotes and information contact your local insurance agent.