A whole life Insurance plan is something that is normally applied for by people who are prepared to pay more for life insurance in return for the assurance that their policy will be in effect for their entire life, as long as they pay their premiums. While there are disadvantages, whole life insurance advantages make it the right policy for some people. The primary advantage of whole life compared to term life insurance is that you won’t find yourself, 20 or 30 years after doing what you thought was the responsible thing in buying term life, suddenly with no life insurance and no affordable options for acquiring it, either. The problem is that your term life was great while it lasted, but the simple fact that it has a finite term implies that if you outlive the policy you will probably want a new plan. With a whole life insurance policy, as long as you pay those premiums, there will be no question of being without insurance, because the policy has no term.
Of course, there are Whole Life Insurance pros and cons. It gets much more expensive to purchase once you are past 50 years of age. For a given amount of cover, it is not as cheap as the price of a term insurance policy, at any age. However if permanent insurance (policies with no finite term) is what you want, whole life it will tend to be safer than universal life or variable universal life insurance, which, while they have much greater flexibility than whole life regarding what investments one can make using them, are also riskier. You could view whole life as a middle ground between universal life or variable universal life, and a term policy, whose affordability might make it attractive, but which may fall short as a life insurance solution for your entire life.
With whole life insurance, you can treat your life insurance as an investment vehicle and make use of the cash value of the policy. However, this may be subject to specific charges and commissions depending on your insurance company. If you are prepared to hold onto a whole life policy for a long period of time, then you have a much better chance of it giving you a decent rate of return.
There are advantages and disadvantages of whole life insurance. Take a close look at it, especially at the favorable implications it has for you when you get older, when term life could really leave you hanging. Even though it is more expensive, for some people it is a perfect fit.