5 Benefits of Whole Life Insurance You May Not Know About

/ Life Insurance / Apr 15, 2023

Whole life insurance (AKA Permanent Life Insurance) can be an incredibly valuable tool to help protect your family in the event of an unexpected accident or illness that leaves you unable to work and earn money to support them.

However, many people are not aware of the true benefits this type of policy offers, and how it can impact their long-term financial stability. In this article, we’ll take a look at five benefits of whole life insurance that you may not have known about before.

1) Protect your family

One of the most important benefits of whole life insurance is that it can help protect your family financially if you die unexpectedly.

If you are the primary breadwinner in your family, your death could leave them struggling to make ends meet. A whole life insurance policy can help provide for your family and give them peace of mind in knowing that they will be taken care of financially if something happens to you.

2) Borrow against your policy

One of the unique benefits of whole life insurance is that you can actually borrow against your policy. This can come in handy if you have an emergency expense or need to make a large purchase and don’t have the cash on hand.

3) Guaranteed for life

Unlike term life insurance that is valid up to a certain term (10, 20 or 30 years max.), one of the main benefits of whole life insurance is that it’s guaranteed for your entire life.

This means that as long as you’re willing to pay the premiums, you’re guaranteed to be approved for coverage. This is a great option for people looking for level premium for their entire life.

4) Fixed premium for life

A whole life insurance policy comes with a fixed premium, which means you will never have to worry about your rates going up. Although it may look a bit expensive in comparison to a traditional term life insurance plan at the early stages of your life, it can save you a lot of money in the long run.

This is because term life insurance premiums, on renewal, can substantially increase depending on your age of renewal and health conditions. Whole life insurance, on the other hand, has a fixed premium rate for your entire life irrespective of your age and health conditions.

5) Immediate cash on death

One of the main benefits of whole life insurance is that it provides beneficiaries with immediate cash upon the death of the policyholder.

This can help them cover expenses like funeral costs, outstanding debts, or living expenses. Plus, the death benefit is paid out tax-free, which can help your loved ones financially when they need it the most.

Let’s talk about the benefits of whole life insurance

Get in touch with our financial advisors to know whether a whole life insurance plan can suit you the best depending on your financial goals and liabilities. We have over 30 years of experience dealing in insurance and investment products in Brampton, Toronto, Mississauga, and Hamilton.

Also read:

Why should you go for a Whole Life Insurance plan in Toronto, Canada?

Trust Life recommends Advantage Plus Whole Life Insurance – A Plan worth more than death benefits