A whole life policy provides permanent protection, just as home ownership provides permanent shelter. As long as you pay the necessary premiums, the death benefit will always be there. Also, a whole life policy builds tax-deferred cash value.

Advantages of Whole Life Insurance

Premiums for most whole life policies remain level, like the cost of fixed interest rate mortgage payments on a home.

When you own a whole life policy, you also build equity and wealth -cash values- over the years, just as you build equity and wealth when you own a home over the years. These cash values accumulate on a tax-deferred basis and can help fund a college education or supplement your retirement savings.

Death benefits are generally income tax-free and depending on the state in which you live, free from the claims of personal creditors.

Death benefit proceeds are payable immediately. They offer an excellent source of cash at a time when it is most needed.

Disadvantages of Whole Life Insurance

Whole life policies are initially more expensive than term policies. A whole life policy is designed and priced for you to keep for a long time. If you don't intend to keep the policy for the long term, it could be the wrong type of insurance for you.

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