Because it’s generally more expensive than term life coverage, whole life coverage tends to get a bad rap.
However, when you consider the pros of such a policy, you might actually find that your best option is whole life insurance. Pennsylvania insurance agents can explain the pros of whole coverage in detail, but below are a few quick tips to get you started.
Whole coverage premiums are predictable: When they purchase whole life insurance, Pennsylvania policyholders can take comfort in fixed, predictable rates. It’s possible to choose a policy that allows for higher premiums to be paid over a specific amount of time or for one expensive premium to be paid as one lump sum, but a traditional whole coverage policy generally presents regular, fixed rates over the course of the policyholder’s life.
With whole life insurance, Pennsylvania policyholders and beneficiaries find permanence: Unlike term coverage, whole coverage lasts for life. As long as the insured kept up with the policy payments, didn’t cash in the policy, and paid back any money he borrowed against the policy, his beneficiaries will receive the full amount of his death benefits when he passes away – whether he purchased the policy five or fifty years ago.
Whole coverage provides financial perks beyond life insurance: When they purchase whole life insurance, Pennsylvania policyholders are also getting an investment tool. Not everyone views this forced savings option as a perk, but because it allows policyholders to borrow against and even cash in the money accumulated from the forced savings, many do see it as a plus.
By Rachel Macey