Benefits Of Whole Life Insurance Over Term Life Insurance

The two most popular types of life insurance are whole life insurance and term life insurance. The term life insurance exists only for a fixed time period. But whole life insurance lasts as long as you can pay the premiums. There are a lot of benefits to this kind of life insurance but one may not find it suitable due to its steeper price over the other types of insurances.

However a whole life insurance is costly, in long run it proves to be more profitable as compared to term life insurance policy. When you buy a life insurance policy, your main purpose remains to save the future of your family. When you buy a whole life insurance policy there is a coverage guarantee against your paid premiums. If you continue to pay the fixed amount of premium the policy will be active till the last day of your life.

And on the policy holder’s death the life insurance company is bound to pay the face value along with cash value if any, to the named beneficiary or beneficiaries. But in case of term life insurance quotes the policy ends after a certain period of time. The term may be of 1 year or 10 years or 20 years and maximum 30 years.

And if the policy holder dies within this period, the beneficiary will get the face value but in case he survives till the last date of the fixed term, the company will not give a single amount to the beneficiary. That’s the biggest limitation of term life insurance policies. If your family can’t get the death benefit, then what is the use of buying a life insurance plan?

A whole life insurance provides you a cash value facility which is absent in term life insurance policies. The cash value facility in a whole life insurance policy provides you the opportunity to borrow money against it within the insured period. And during an emergency you can withdraw this cash value too which will adjusted in time the company pays the coverage.

Another advantage of paying whole life insurance premium is that the company can not withheld the policy or raise the whole life insurance rates in case your medical condition deteriorates or you grow older. This is the biggest advantage of such policies which allows consistent or level premiums.

Another positive aspect of whole life insurance policies is that this kind of policy provides interest. And the amount of interest forms the cash value during the policy term. So there is a scope of getting larger dividends. So a whole life insurance policy can perform as your investment option too, which a term insurance policy fails to be. As in case of term insurance policies the beneficiary gets only the face value if the policy holder dies during the term period. There is nothing like cash value which you can withdraw or borrow against during the term of the policy.

A person usually buys a whole life insurance after comparing the whole life insurance quotes and the whole life insurance rates available online. Basically these are the determining factors. A life insurance company determines the whole life insurance rates on the basis of age, sex, health condition and many more information that the applicants feel in their whole life insurance quotes.

Always keep one thing in mind that insuring your life is must for the security of your family in future when you will be no longer. Therefore finding the right life insurance company for your whole life insurance is your priority. Do a proper research by comparing the whole life insurance quotes and the whole life insurance rates before you select an insurance company for buying Whole Life Insurance Company. Visit For detail information about whole life insurance quotes and whole life insurance rates use can use this site.

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