If you’re shopping for life insurance, you may have discovered two main options: term or whole life. As its name suggests, term expires after a set window of time. Whole life insurance, on the other hand, lasts an entire lifespan, until a person passes. Find out why the latter option is so widely chosen below.

5 Advantages of Whole Life Insurance

1. No Expiration Date

A whole life policy is advantageous because it will always provide your beneficiaries with a death benefit, no matter when you die. Term policies, on the other hand, only pay out if death occurs during a specific time frame. This type of insurance, therefore, provides peace of mind in knowing that protection will be provided in any set of circumstances.

2. Fixed Premiums

With a whole life policy, you’ll be locked into monthly payments for the rest of your life. While this does mean you’ll need to pay consistently to be guaranteed protection, the upside is that your payment will never increase.

3. Accumulation of Value

In addition to the sum your beneficiaries will be paid out based on the value of your policy, your death benefit will also grow over time. A portion of your premium is put towards the cash value each month. With some plans, you may even be able to access this cash if ever needed, such as during retirement.

4. Dividends

Many insurance companies pay out dividends or rewards for being loyal customers. You can either use these payments as some extra cash to have on hand, put it towards your premium payments, or reinvest the money to help your benefit grow even further.

5. Tax Benefits

The benefits paid out on life insurance policies usually aren’t taxable. Moreover, taxes are deferred on accumulating value; you’d only have to pay taxes if you were to take out money and cancel your policy. Should you wish to take out money that you’ve paid in without canceling the policy, it would not be subject to taxes.

To find the best life insurance policy for your unique needs, turn to Patton Insurance Group. Serving southern Montgomery County and northern Warren County in Ohio, this trusted independent insurance company offers plans from a number of national carriers. Their experts are dedicated to finding the coverage best suited for you. Request a quote online or by calling (937) 886-9966.