At some point in your life, it’s a good idea to consider the perks of buying life insurance early. In fact, the earlier you buy a policy, the better the long-term financial return on investment may be.
Though there are many types of life insurance policies on the market, one of the most recognizable is a whole life policy. Their basic principle is that they last for the remainder of your life once you enroll—I.e. they don’t expire. Therefore, whole life plans offer convenient financial solutions for those who want the assurance of a long-term life insurance policy.
Often, when compared to the other primary type of life insurance (term life insurance), a whole life policy is the more expensive. However, it offers a diversity of benefits that term policies do not, and therefore opens up more possibilities for you to use your policy in unique ways. Let’s take a closer look at some of these.
1. Personalized Benefits
Your goal for your life insurance is for the plan to provide financial assistance to your loved ones in the event of your death. A whole life policy can provide a significant death benefit, and it will do so for the remainder of your life. Since you have very little risk of ever seeing your policy expire, then you can choose for your death benefit to go to any number of causes.
2. Low Risk of Policy Lapses
Unlike term policies, whole life insurance will never expire, provided that you continue to pay for it. Therefore, you won’t have to worry about reapplying for a new policy every time a term plan expires. As long as you pay for your whole life plan, it will last until your death, no matter when that might be.
3. Rates Can Be Affordable if You Enroll Early
It’s always better to enroll in life insurance while you are young. The younger you are when you apply, the lower your risk of death will obviously be, and the better your overall health will appear to the insurer. Since you likely will have to undergo a medical exam before an insurer will approve your policy application, both of these often make you less of a risk to the insurer.
4. You Can Receive Investment Benefits
Besides a death benefit, a whole life insurance plan often will offer the policyholder a substantial investment vehicle through a cash value account. A portion of your premium will act as an investment, which will be deposited in the cash value account and thus grow in value over time. This will provide you with a substantial return of income later in life. While you are still alive, you can often draw upon this cash value account for a source of income.
All in all, whole life insurance policies can act as valuable tools in helping the policyholder achieve financial security. Therefore, they’re worth the investment