There are several reasons why you should buy whole life insurance. Whole life insurance is really a permanent life insurance that covers the entire life of the insured. The popularity and increased demand of whole life insurance is because it provides financial protection, accrues cash value and pays dividends.
A major reason why you should buy whole life insurance is because of its investment element that secures the future of the insured. With whole life insurance the monetary value of the death benefit does not decrease. It is free of Federal income tax and can be annuitized in the form of monthly income if you do not wish to take a lump sum payment.
Consistency of premium level is another reason people buy whole life insurance. This means that there is no increase in the premium unlike term insurance. Term insurance have an upward review of premium when the term expires.
You can also get another advantage from whole life insurance in the form of “cash value”. Cash value in whole life insurance is the accumulation of useable cash reserves. This is applicable only to whole life insurance. It is an increase that results when the premium is paid and is also accumulated tax deferred.
With whole life insurance policy, you earn dividends. This is a good reason to buy whole life insurance. You can receive the dividend in the form of cash that can be used to make purchases for paid up additions. This minimizes future premiums and can also accumulate interest if kept within the policy.
As you can see, there are many good reasons to buy whole life insurance. You can simply fill the form in the is link for a free consultation on buying whole life insurance.