Life insurance. Once whole life coverage has been issued, it cannot be revoked, reduced or cancelled except in cases of non-payment or fraud. This makes whole life insurance appealing because it provides a degree of certainty. The primary advantages of whole life insurance are:
- Protection for life – Doesn't expire or go down in value.
- Level Premiums – The rate you pay for your policy will never increase.
- Cash Value – The portion of your premium builds cash value which can be borrowed against.
- Guaranteed Death Benefit – Amount your loved ones receive is guaranteed.
Once whole life coverage has been issued, it cannot be revoked, reduced or cancelled except in cases of non-payment or fraud
The decision to purchase whole life insurance rather than term is a personal choice and depends on your finances, age, and coverage goals. The first part of the decision-making process when it comes to choosing between whole life and term is cost. Whole life policies cost significantly more than term policies for the same amount of coverage. Although that cost is guaranteed to remain level, your main concern should be with having adequate coverage when you need it.