What Is Whole Life Insurance ? Whole Life Insurance Fully Explained.

What Is Whole Life Insurance ? Whole Life Insurance Fully Explained.

Now let's take a look at the next type of life insurance whole life insurance so what is whole life insurance whole life insurance provides cover for the life of the insured it is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to the named beneficiary upon the death of the insured in addition to providing a death benefit whole life policies can do the saving component where cash value may accumulate over time so why should

you buy a whole life insurance you should buy a whole life insurance if you have commitments to your dependents is for the rest of your life and you want to provide them some form of financial support for the rest of your life so here are some of the benefits and advantages of whole life insurance number one as the name suggests it's for own life it is permanent and it stays with you through all the way to actually

be passing away so the family knows that for sure that's what will get paid out number two it's not an expense it's actually an asset it's a part of a balance sheet because there's cash value in this policy which then becomes an asset on your personal balance sheet or corporate balance sheet so it's not 100% expense number three the third biggest advantage there are lot of flexibilities available in the full life plan you are allowed to borrow your cash value skip premium take short term loans all these

accessibility cash flow give it a lot of advantages whole life insurance is supposed to last all the way till you pass away and that is a very big advantage when you're doing estate planning or family protection because families and commitments are sometimes forever and we cannot lose the term to decide how long this is for number four there is a flexibility to the amount of premium you pay you'll be able to choose what you want to pay for 10 15 20 years or even a single premium sometimes you have the advantage to decide how your cash flow can affect

your insurance if you have the cash flow in advance you can pay off the front if you don't have the cash flow you can stagger it out so what are some of the disadvantages of whole life insurance number one the opportunity cost of the excess premium will take understand that whole life insurance is more expensive than term insurance number two some of these cash values might be variable so they might not be guaranteed it is important to understand that the cash

value is guaranteed or variable number three you might not be insured if you have a pre-existing condition that your whole life insurance covers cancelling your whole life insurance will remove your coverage now let's illustrate this with a case study on her life insurance let's say we have Peter a 50 year old father which is a sole breadwinner with a wife and a kid

that is six years old like most family Peter owns or form that is on the mortgage should Peter pass away one day a certain amount of money would be required to firstly support his family secondly support his kids education and thirdly to pay off his mortgage Peter should buy whole life under these scenarios number one he wanted to make sure his family is financially protected for life if anything anything were to happen to him number two he wanted to

cover his commitments like debts and liabilities should anything happen to him in general whole life insurance is the best for long term commitments to your beneficiaries now let's take a look at the next type of life insurance the universal life you