Whole Life Insurance
Whole life insurance is also referred to as ordinary life, this the most common type of permanent life insurance. It provides the certainty of a guaranteed amount of death benefit and a guaranteed rate of return on cash values. The premium is also level and guaranteed to never increase. Some types of whole life insurance policies allow policy owners to participate in the financial prosperity of the insurance company by receiving dividends. Dividends can by used to grow the death benefit and/or the cash value of the policy.
Although, there are some disadvantages to whole life insurance...
Disadvantages
- Required premium levels may make it difficult to buy adequate protection.
- Premiums are typically higher in comparison for term insurance.
- Coverage may cost more during the first few years of coverage when the desire for protection is often greatest.
- Generally the costs are greater to cover needs that will disappear in time, such as mortgages or family income needs for children.
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