Last Updated on April 7, 2020 by Gopal Gidwani
Whole-life term insurance can be a part of a traditional life insurance policy. Unlike other insurance products, whole-life insurance policy can cover you for an entire lifetime. Apart from a life-time coverage, it can provide you with the following term insurance benefits mentioned below.
1) It can offer permanent insurance
Since a whole-life term insurance policy covers you up to 99 years, it can offer permanent cover to you and your family in your presence as well as absence. A whole-life cannot expire until you pay the premium on a regular basis. When you make the premium payment on time, you can reap the benefits of the whole-life policy as well as your policy remains active until the completion of the tenure without the fear of termination.
Before you buy term insurance with whole life coverage, you should calculate the premium value in advance. Since the premium can be relatively high, you should understand if you can afford it or not. The earlier you buy the better it is for you since the premium is lesser. If you struggle to pay the premium amount, your insurer can discontinue your selected whole-life term policy.
2) It can provide cash value
Unlike other insurance products, a whole-life term policy can allow the growth of your money due to the presence of the cash value component. The cash value can be the amount paid to your insurer that you can store when you are unable to pay the premium.
When you surrender your whole-life term policy, your insurer can return you with cash value. Moreover, the cash value under whole-life term insurance can be a tax-deferred savings vehicle.
3) It can let you leave a legacy behind
A whole-life term policy can provide death payout to your family members in your absence. Since the financial well-being of your family can be a top priority, you wouldn’t have to worry about them after your demise. The coverage offered under whole-life term insurance can suffice your family members to maintain their standard of living in your absence.
Since the coverage can let you decide the future of your family, you should choose it wisely. As a policyholder, you should consider the total number of financial dependents, their financial requirements, and so on. After analysing the requirements of your family members, you should select the coverage amount. However, see to it that you are overwhelmed while choosing the coverage amount. If you buy more than you require, the entire cost of the whole-life term insurance can rise.
As highlighted above, one of the major benefits offered by whole-life term insurance can be permanent coverage. Since life can be unpredictable, the whole-life coverage offered by these term plans can help you to stay prepared financially from unfortunate events, such as loss of income, death, critical illness, and so on.