Whole life insurance explained.

Life insurance is always a good idea; being able to put money aside to secure both your future and that of your loved ones, who wouldn’t want to have such a thing. Its long term benefits can definitely not be doubted. Now imagine that you do not just get to put money aside but you also get to do some investments within the same policy; isn’t that an even better idea. Well, that is what the whole life insurance policy is all about.

The whole life insurance policy brings together a component of investments that are tax advantaged and lifetime insurance protection. There are quite a number of benefits that come with choosing to take this policy and these include:

  • The chance to cater for all final expenses and debts that you might have accrued
  • Get the assurance that your family will have at their disposal enough resources to ensure that they continue leading a comfortable life
  • To cater for any taxes that may still owe on your estate to ensure that your beneficiaries actually get to enjoy a bigger portion of your estate.
  • Leave behind a strong and good legacy with a charity of your choice or within your community
  • Leave your business with enough money to facilitate a buy-sell agreement
  • Provide your business with protection against the loss of an employee that was key to it

The benefits that have been stated above are all those that you will accrue once you have passed on. This does not go to say that there is no possibility of you enjoying the benefits of this policy while you are still alive. Below are some of the advantages that you will be able to enjoy while you are still living:

  • You will be able to build savings that are tax-advantaged and that you can access anytime you need for business or personal use. Please note though that any cash values that you withdraw from the policy might actually be liable for tax.
  • You get the chance to supplement the income that you will get on your retirement
  • You will get funds for home care or long-term care in the event that you need it.
  • You will also get to enjoy good investment performance that is designed to last for the long-term.

It is imperative that you get to understand that whole life insurance is a life insurance product that is permanent. However, it is important to take into account the par account’s investment performance when looking to determine the policy’s long term value.