Whole life insurance even though it is not the least expensive life insurance policy you can purchase can still carry through the needs of some. Why some people have got such as an antipathy to this policy I will never understand. Term insurance is also good insurance and can suit into more than states of affairs than whole life because of the low cost. More people can afford it. Both types of life insurance function the same purposes, however, when you purchase whole life insurance you get some further benefits that term life insurance makes not provide. Let us take a expression at the whole life insurance policy and it's benefits.

Level Premium

Whole life insurance have a fixed degree insurance premium which never increases for as long as you have the policy. When you pay a whole life insurance premium a part travels to pay for the death benefit and a part is applied to cash values. In the initial old age a part of the insurance premium is also applied to administrative costs.

Death Benefit

Like any other life insurance policy the whole life insurance policy have a guaranteed death benefit which can be paid either in one lump sum of money or in the word form of a monthly income. This death benefit is usually paid free of federal income taxes. There are respective income options including a life income, an income for a fixed predetermined time period and an income for a fixed amount. The insurance can also maintain the principal and just pay the interest. The principal is paid upon demand.

Cash Values

The whole life insurance policy incorporates a guaranteed cash value which accumulates tax deferred. If you are ever in need of cash you may borrow from your cash value. You don't need to state the insurance company why you desire the money and you pay back the money at your convenience.

Dividends

Cash values earn dividends which depend on the public presentation of the company. these dividends are not guaranteed. They can be taken in cash, can be left to collect interest, can be usage to reduce insurance premiums or they can be used to purchase paid up additions. Paid up improvers on a whole life insurance policy is a fully paid up whole life policy. These paid up improvers have got cash values and also earn dividends.

There are many riders you can add to your whole life insurance policy. The two chief riders are the release of insurance premium benefit and the accidental death benefit rider also known as the dual insurance rider.

Waiver Of Premium.

If the insured should go disabled, any clip after six calendar months of disablement the life insurance company will step in and pay the insurance premiums even if the disablement endures for the lifetime of the insured.

Accidental Death Benefit

If the insured individual should decease in an accident, for illustration an automobile accident, the life insurance company will pay twice the death benefit. If you have got got a policy for $100,000, and you have the accidental death benefit rider, the insurance company will pay $200,000 to your beneficiary.

The above benefits may be deserving the extra insurance premium you would pay for a whole life insurance policy.