5 Reasons to Buy A Whole Life Insurance Policy!
It may sound tempting to select term life insurance as your insurance policy, but you will only gain temporary protection and zero benefits if you outlive the policy. Plus, selecting it for a very long time is counter-productive and quite expensive. A person that wants to balance costs with potential benefits should consider purchasing a permanent type of insurance. We present you 5 reasons to but a whole life insurance policy:
1) Permanent protection. Once you have obtained coverage, you will never have to worry again about being ineligible for life insurance. Death benefit is guaranteed and the only way to make this policy lapse is by not paying the premiums. Otherwise this policy is permanent.
2) Fixed premiums. Having premiums locked a specific value implies a higher stability and predictability. An insured will know exactly how much will have to pay in the future. This gives you time to accumulate the right amount of money between payments. Premiums will not increase even if you get sick while under coverage.
3) It is an excellent tool to gain extra money during retirement. Besides saving money, you can also earn money with the help of whole life insurance policies. The insurer will invest a part of the premiums in different market products, usually mutual funds. You will get a part of the profit if those investments were profitable.
4) Borrowing against policy. Another method to get money when you needed it the most is to ask the insurer to borrow some money from your savings account. Remember not to withdraw too much otherwise this operation will diminish the death benefit and the cash value.
5) Whole life insurance provides tax-deferred money. Death benefits, cash withdrawals and interest growth are all tax free.
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