What are the reasons to buy whole life insurance? This question is not a new question, for many life insurance buyer this question have become the most important part before buying any term life insurance or whole life insurance.
Here are some reasons why whole life insurance better than term life insurance, and remember to consult with your financial planner if you are not really sure about it.
1. Whole life insurance has the ability to accumulate a cash value on tax deferred basic and when you want to cancel your policy, the cash value will be returned to you.
2. Whole life insurance coverage the insured’ entire life not like a term insurance that only cover for a specific period.
3. Whole life Insurance has saving features and also works as the tax savings.
4. Whole life insurance has very low rate of return compare to other investments, most investment professionals would agree not to use it solely as an investment tool, but whole life insurance is a good investment if you need life insurance and tax benefits.
5. Whole life insurance protect you when you become disabled and pay your premium till you are healthy enough to return to work or for the rest of your life if you add a waiver premium disability rider.
To choose between whole life insurance and term life insurance, please look at your personal situation and chose the best that suit for you.