Why consider whole life? These days, we see a lot of ads for term policies. Consumers are attracted the lower premiums of these temporary policies, and it seems logical to spend less money for more coverage! But many people still want whole life, so we need to explore the benefits.

The fact that whole life is permament should make the first benefit obvious. As long as the policy is kept in force, it will cover us. So we will have life insurance as long as it is paid for. This means it does not expire after a term. Many people like the fact they can pay for their policy over a period of years, and then enjoy coverage as long as they live!

The rates will also stay level, and so will the policy death benefit. This means that we do not have to worry about rate increases or benefit reductions. This is not always true of term policies. Rates may not be guaranteed for the whole term, and the death benefit may decrease.

We can also use a policy to pass on money. The death benefit is usually not taxed either. It is comforting to be able to pass on money without also passing on a tax burden. This is why these policies are often used as a way to pass on estates to spouses and children.

You can also use your permanent policy to grow a cash account which may help you build up your assets. While you make your life insurance payments, you are also growing its cash value.

After some time, these policies actually build up a cash value. If you choose to surrender your policy, you may get accumulated cash in return. If your policy has a cash value, it may also be used to pay premiums if you lose income for awhile. Of course, you need to check with your own life insurance contract to see how this works.

These permanent policies can also be used for life settlement transactions. These are usually only marketed to older people. Investors purchase policies for an amount that is less than the death benefit, but more than the cash surrender value. This can be a great way for seniors to take advantage of unneeded life insurance.

Of course, we all hear a lot about term life. If you are shopping for a new policy, or evaluating your old policy, be sure and consider the benefits of whole life policies too.

Would you like to learn more? Read here : What is Whole Life Insurance?. We want you to understand the types of life insurance before you buy.