Whole life insurance policies provide lifelong protection, not just for a specific period such as Term Life Insurance. Whole life insurance covers you for as long as you live and continue to make timely premium payments.
Most Whole Life Insurance policies have a feature known as "cash value" or "cash surrender value." This is a feature which is not found in Term Life Insurance policies. Whole life insurance builds cash value, which is a return on a portion of your premiums that the life insurance company invests. Your cash value is tax-deferred until you withdraw it. You can borrow against it as well.
The cash values of many life insurance policies may be affected by your life insurance company's future experience, including mortality rates, expenses and investment earnings.
Also, keep in mind that with all types of whole life insurance policies, the cash value of a policy is different from the policy face amount. Cash value is the amount available when you surrender a policy before its maturity or your death.
With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. The guaranteed cash values can provide money later on to help with temporary needs or emergencies.
If you don't intend to keep your life insurance policy for the long term, usually 15 years or longer, Term Life Insurance may be the better life insurance option for you.
Most Whole Life Insurance policies have a feature known as "cash value" or "cash surrender value." This is a feature which is not found in Term Life Insurance policies. Whole life insurance builds cash value, which is a return on a portion of your premiums that the life insurance company invests. Your cash value is tax-deferred until you withdraw it. You can borrow against it as well.
The cash values of many life insurance policies may be affected by your life insurance company's future experience, including mortality rates, expenses and investment earnings.
Also, keep in mind that with all types of whole life insurance policies, the cash value of a policy is different from the policy face amount. Cash value is the amount available when you surrender a policy before its maturity or your death.
With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. The guaranteed cash values can provide money later on to help with temporary needs or emergencies.
If you don't intend to keep your life insurance policy for the long term, usually 15 years or longer, Term Life Insurance may be the better life insurance option for you.