The Advantages of Whole Life Insurance

The advantages of whole life insurance are many. Whole life insurance provides life long coverage at a fixed rate. Many policy holders enjoy the predictability of premium payments that these policies offer. Unlike term life insurance, which does not build cash value, whole life insurance accrues interest and cash value. One of the most important advantages of whole life insurance is that it offers interest gains that are not subject to income or capital gains tax. Talk with your insurance agent to learn about the amounts available with the specific plans you are considering. Policy holders should be aware that premature surrender of the policy can result in a loss of principal. Potential policy holders should carefully research whole life policies. Whole life policies remain in effect as long as premium payments stay current. If you anticipate that you may only be able to make payments, say for the next 10 or 15 years, a term policy may be a better option.