What are the benefits of whole life insurance cover?
Whole Life InsuranceUnlike a term life insurance, a whole life cover promises to cover you for the rest of your life, based on the premiums paid. While safeguarding you all for life, a whole life cover also has certain striking benefits: Read More
A whole life insurance has a cash value factor that gets amassed over a period of time and this is the biggest benefit of owning this policy. This policy also lets the person borrow against some cash value from the policy up to the stipulated limit. In case of the policy buyer’s demise, the outstanding loan balance which is left of his policy will be deducted from the death benefit, which will ensure interest.
If we consider a term life policy, it expires when the coverage ends and then one is left with the choice of buying a new policy or alternatively let it expire. A prime benefit of the whole life cover is that it is regarded as a permanent life insurance policy, which is designed to provide the policy holder with a lifetime coverage protection without any changes in the premium amount or the time period.
This policy also offers the buyer a certain amount of flexibility in regards to its potential of accumulating cash value over a period of time, which the buyer can use for personal reasons. One can also choose to leave it untouched with the likelihood of growing the policy’s cash value over a period of time.
A whole life insurance cover cannot be revoked, cancelled or reduced for any reason except in instances of fraud or non-payment. Thus, this makes for a dependable life insurance that gives the buyer a sense of satisfaction because of the long term investment.