Some people put off purchasing a life insurance policy. This could be for any number of reasons, such as a strained budget, thinking it is unnecessary, or just not realizing how important having a policy in place actually is. What they may not realize is that a life insurance policy can do much more than simply provide a death benefit. Consider these advantages offered by a whole life insurance policy.
It Builds Cash Value
unlike term policies, permanent, or whole, life insurance builds cash value over time. Part of each premium is set aside into an investment account, You can access this money for certain purposes, meaning there are several ways to maximize this benefit. Some people choose to take loans against their insurance policy. Others might use the cash value to offset premium payments.
You Can Choose a Single Payment Option
If the idea of an annual premium is not attractive, consider a single-payment policy. This allows you to make one payment upfront for continued coverage. A prepaid life insurance policy like this makes a great gift for a child or grandchild. You’ll know they are covered and they never have to worry about making a premium payment.
Whole life insurance policies offer several advantages you won’t get with other types, such as building cash value and offering single payment options.