Whole life insurance has its merits
Here at Life Insurance Quotes we certainly drum home the benefits of term life insurance, as well as its cost effectiveness, and the fact that it offers customers with protection when they need it the most, but that doesn’t mean that whole life insurance doesn’t have its merits.
In fact, for some customers, whole life insurance provides a fantastic savings opportunity, offering protection against a potential fall in pension value, as well as a life insurance policy, and should not be discounted if you could afford the monthly premium payments.
Why is whole life insurance popular?
Those who buy whole life insurance regularly point to the fact that they are guaranteed a return on their investment. Many people who buy term life insurance will outlive the term of their policy, and will have spent tens of thousands of pounds on a policy they’ll never use. You may also point to home insurance, car insurance and many other insurance policies and point out that they are very similar, but whole life insurance customers like the fact they can be sure that at some point they, or their family will get their money back.
One of the other reasons whole life insurance is so popular is the ability to borrow money against your final payout, later in your life when the need for a life insurance payout for your family becomes less necessary. Many people reach a stage where they have paid off their mortgage, their children have left home and they are comfortable enough that if they died, their family would be fine without any money.
They may however decide that their family could do with some extra money now, for a holiday, to pay for a house, or to top up a failing pension, and whole life insurance customers can borrow money against their final payout, before they’ve actually died. It’s a great way of seeing the money you have effectively put aside used for good, whilst you’re still around.