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Advantages Of Whole Life Insurance Policies
by: Donald Lusan
When you consider the advantages of whole life insurance policies I hope you
will conclude that this is life insurance worth owning. I have no objection to
term life insurance and even owned some when I was much younger. Each type of
policy has it's place and it's own function. I cannot, for the life of me, understand
why some people never have appreciated this. I refer to the term advocates who
seem to hate the thought of buying a whole life policy.
The First Of The Advantages Of Whole Life Insurance Is The Death Benefit
The whole life insurance policy assures you a guaranteed death benefit that
never decreases and upon death is usually free of federal income taxes. If you
choose you may take the death benefit in the form of a monthly income instead
of a lump sum.
The Premiums Remain Level; Another Of The Advantages Of Whole Life Insurance
Policies
When you buy a whole life policy the premium you start out with is the premium
you will always pay. It never increases. If you, however, decide to use your
dividends to reduce premiums you will pay a much lower premium than you contracted
for.
Whole Life Insurance Policies Have Cash Values
Another of the advantages of whole life insurance are the cash values. They
can be borrowed by the policy owner for whatever reason he or she should choose.
If you should decide to surrender your policy at any time you receive your cash
values. These cash values accumulate tax deferred.
Participating Whole life Insurance Policies Earn Dividends
If you own a participating whole life insurance policy you automatically become
eligible to earn dividends on your cash values if the company performs well,
which they usually do.
These dividends can be paid to you in cash, can be used to purchase paid up
additions, to reduce premiums or they can be left to accumulate at interest.
Certainly these are worthwhile advantages of whole life insurance. There are
many, many more...
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About The Author
Donald Lusan
For more than 40 years Donald has been known for his extensive knowledge of
the life insurance business. He has represented some of the largest and best
life insurance companies in the United States as well as Canada. His advice is
invaluable. Donald's website is: http://www.lifeinsurancehub.net
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This article was posted on December 26, 2005
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