The Top 5 Advantages of Whole Life
- Stephanie Ehman, CIC, CPRM, CISR, CPSR
- Jan 17
- 1 min read
Updated: Jul 30
Whole life. Term life. What do these terms mean and how do I decide which policy type is right for me? Here are the top five advantages of whole life insurance.
1. It’s an asset. Whole life insurance is more than a policy—it’s a lifelong asset. Whole life has a cash value component that grows over time. As you pay premiums, a portion goes toward building cash value.
2. The cash value is tax-deferred. You won’t pay tax on the cash value that is building inside the policy.
3. Premiums remain consistent. You won’t face unexpected increases in costs as you age, like term insurance.
4. You can withdraw the cash. Over the years, you can access this cash value for needs like home repairs, college expenses, or even retirement income. Essentially, it’s a savings account with built-in life insurance!
5. It’s permanent. Unlike term life insurance, which only covers a set period of time, whole life insurance offers permanent coverage, ensuring your loved ones are protected no matter when life takes its course.
Whole life insurance can be a foundational part of your long-term financial plan. Whether you’re planning for your family’s future, protecting your legacy, or simply looking to invest in a versatile financial tool, whole life insurance can help meet these goals. It’s a policy designed to grow with you, providing peace of mind and financial security through all stages of life.
Stephanie Ehman, CIC, CPRM, CISP, CPSR, is a risk consultant at Knight Insurance Group with a specialization in personal insurance, including home, auto, and life.
