Life insurance is the great choice for financial protection if you are having dependents. A death benefit can support your dependents even when you are not there. It can support to pay off your mortgage, daily living expenses, or other debts. As you see, there are many types of life insurances and each policy has different benefits. Therefore, it’s really important to understand the pros and cons of each policy to get right one for you. In this article, we will review whole life insurance to see how it works.
Whole life insurance provides the coverage for your entire life. Once your whole life policy has been issued, it can’t be reduce, increase or cancelled by insurance company. The primary advantages of whole life insurance would be:
- Protection for your entire life as it doesn’t expire
- Your premium rates will never increase. Once you signed the policy, the premium level will keep the same.
- Your cash value will grow through life time of the policy
- Death benefit will be guaranteed.
Although, you should be aware of the amount you have to pay for whole life insurance. It will be much higher than term life insurance. Before buying, you should consider your financial situation to decide if that’s the right policy you should go for. There are some other factors that you should also consider such as age and desired coverage. As you are getting older, your premium rates will also be higher. Once you purchase the policy, you can lock the rates for your entire life. The earlier you get it, the better the rates is. The cost of premium rates will also be affected by the amount of death benefit you choose. It depends on your needs, whether you want to pay off your mortgage or take care of your loved ones, you decide how much is appropriated.