Insuring Your Whole Life

Life insurance is a necessity in the world of today. It provides protection to us and to our loved ones. In case of anything untoward happening, we can rest assured that the benefits will go to the right persons. In the world of today, money is security, and a life insurance plan is a good way to be assured about this security. For some people, life insurance is also an investment option. Insurance plans that build cash value and offer tax benefits can be regarded as providing some value for our investment. However, insurance plans are primarily meant to build security. If one is looking for solely an investment option, it makes more sense to look elsewhere.

These days, we can choose from a whole range of life insurance options. At the very basic level, we have a choice between term life insurance (which provides coverage for a specific number of years) and whole life insurance (which provides coverage for one's entire life). While both these have their own pros and cons, I find myself in favor of the whole life insurance option. This has a number of great advantages that is missing in the term life insurance option.

First of all, whole life insurance plans invest part of the amount that is paid as premium and help build cash value. After a period of time, it may so happen that the cash value itself goes into paying for the insurance. This is a major advantage that is not present in the term life option. Moreover, most whole life insurance plans require only a single medical examination. Thus, one is saved from having to periodically go through medical check ups, unless one decides to alter one's current plan. The tax savings that are incurred also work up to a significant amount in this case.

In addition to these advantages, one can also choose between three basic kinds of whole life insurance. The first of these is the traditional whole life insurance. This assures the insurer of a minimum rate of return on his/her cash value. The second type is the whole life insurance policy that is interest-sensitive. In this case, the policy offers a variable rate on one's cash value. The third type is one that involves a single premium. This is suitable for those who have sufficient money to straightaway buy an insurance policy. Thus, even after choosing between whole life and term life insurance, one can still choose among the various kinds of whole life insurance.
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