•    When it is possible to pay the premiums and get the needed coverage

•    If you don’t require the savings which is invested in life insurance policy for a minimum period of 10 years.

•    If the policy is affordable and provides good rates

•    If you need more tax deferred savings

Advantages of whole life insurance

Premium level:

When talking about premium it is important to compare life insurance policies premium level. For instance in case of term life insurance, the premium rate increases at the time of renewal where as in whole life insurance, the premium rate remains constant. It does not increase with time. And if dividends are used, then also the premiums that need to be paid are minimized.

Death benefit:

In whole life insurance the death benefit never decreases at any case. The death benefit does not decrease in case of whole life insurance. In case of death this death benefit is not subjected to federal income taxes. There is a facility to accept death benefit is two ways that is as a lump sum amount or as a monthly income.

Cash value:

In comparison to other insurance policies the whole life insurance policy provides usable cash. Along with the paying premiums this cash rises. And when the policy is surrendered due to some problem the policy holder gets the cash values. And this value is tax free.


A feature of dividends is present in a participating whole life insurance. And you can receive them as cash amount. And you can use them to minimize the premiums, to purchase a paid up addition or to generate interest they can be used to minimize premiums, to generate interest or purchase a paid up additions.

These are some of the benefits of whole life insurance policies. But before going for any insurance policies it is better to compare its features and rates. Also read Life Insurance News to know current happening in the industry.