Advantages of Whole Life Insurance

Family life insurance and policyWhole Life Insurance Basics

When looking for the right life insurance plan, you may have questions about which type of policy will work best for your needs. While both a term and whole life insurance policy will provide life insurance benefits, a whole life insurance policy comes with extra benefits, including an investment component.

The premiums for a whole life insurance policy are based off of your risk of dying at the time that you buy the policy. The higher your risk, the more expensive your premiums will be. Once your premiums are decided, they will stay the same throughout the life of the policy.

A whole life insurance policy comes with many advantages, including:

  • Long-term protection – a whole life insurance policy will provide coverage for your entire life, no matter if you pass away in a month or live to be 100. As long as you keep up with the premiums, you will never have to worry about losing your coverage.
  • Savings and investments – if you find it difficult to build up your savings account, your whole life insurance policy will do it for you. Keep in mind that the return on the savings portion of a whole life policy is typically much lower than the returns that you can see with stocks, but it is guaranteed.
  • Works for children – investing in a whole life policy for your children can provide coverage for their entire life and build up a significant cash value. While your children are young and healthy, the premiums will also be very low, which will stick with them for the rest of their lives.

Contact the insurance experts at Desert Empire Insurance in Palm Desert, California for all of your life insurance needs. We will work with you to ensure that you have the protection that you deserve.