What are the advantages and disadvantages of a whole life insurance policy?

Since whole life insurance is coverage that provides guaranteed protection your entire lifetime, it will cost more than a term life insurance policy which provides coverage for up to 30 years.

The advantages of whole life insurance include:

1. Guaranteed lifetime protection.

2. Builds can value inside the policy.

3. You may take a loan form the cash value.


The disadvantages of whole life insurance include:

1. It may cost 2 to 3 times more than term life insurance.

2. You may or may not be able to afford as much life insurance as you really need with whole life.


However, it is possible to buy a term life insurance policy for your shorter term need,s and a whole life insurance policy for your lifetime life insurance needs. You can own more than one life insurance policy.

In addition, a term life insurance policy usually offers an option of convertibility, which means you may convert your term life insurance policy into a whole life insurance policy by a specific date stated in your term life insurance contract.

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