The Pro's & Con's Of Buying Whole Life Insurance

Whole Life Insurance is a permanent type of life insurance that is designed to last until the day you pass away. In other words, your "whole life" or until you reach the age of one hundred years, whichever comes first.

Whole Life policies provide life insurance coverage and also establish a savings account that will build up cash value over time. This is how it works. Each month that you pay your premiums a portion of what you pay goes toward buying insurance and the rest goes into your savings account. Many states require that you show cash value in your account within at least three years from the time the policy was established.

The good thing about having this savings account is that you can borrow against it later in life. You could use it for home repairs, college for the kids (or yourself), home improvement, second honeymoon or whatever it may be that you want to do. However, you must pay the loan back if you want your life insurance policy to pay out in full.

The pro's of Whole Life Insurance is that it provides guaranteed protection for as long as you live and maintain the premium payments faithfully. Also, you'll build cash value that you can borrow against later in life.

The con's of a Whole Life Insurance policy are exactly what the pro's are. What, you say? Let me explain.

For one thing, in this day and age many people don't necessarily need a life insurance policy to cover them for their whole life. What if they have no kids? What if they're single? What if all of their assets are paid off and they already own a burial policy? There are several intangibles to consider.

Also, why would you want to use a life insurance policy for your savings account? There are much better ways of investing your money that will give you a higher return than any Whole Life policy will.

The bottom line is that, depending on your situation you should look at both Whole Life and Term Life Insurance and sit down with an agent to determine which is going to be the best option for you.
Rick Stevens is a former Life And Health agent from Washington state. Get more tips about life insurance Right Now by visiting http://www.TheLifeInsuranceGuys.com/ or by simply clicking on Whole Life Insurance