Choosing Excellent Insurance Coverage

3 Reasons To Choose Whole Life Insurance Over Term Life Insurance

Many insurance companies offer both whole life and term life insurance policies. While there are benefits associated with both of these options, many people will find that whole life insurance policies are the better option. If you are currently trying to choose between a whole life and a term life insurance policy, taking the time to review the three benefits below can help you decide if a whole life insurance policy is the better choice for you as well. 

Never Worry About Being Denied Coverage

With term life insurance policies, you will need to apply for a new policy each time your active policy expires. As you grow older, you may find that qualifying for these policies becomes increasingly difficult. This is especially true for individuals who find themselves battling medical problems. At some point, you could find yourself unable to access the coverage you need simply because no insurance company is willing to underwrite a new policy. This is not something you need to worry about with whole life insurance. This is because as long as you continue to pay your premiums, you will not need to apply for a new policy ever again in your lifetime. This means that you will never need to worry about being denied coverage. 

Never Worry About Rate Increases

One of the benefits that many people list in favor of term life insurance policies is that they are often more affordable. While this may be true for young, healthy individuals, this is rarely the case for people later in life. This is because as the risk of a payout on the policy increases, so will the premiums associated with the policy. This means that if you ever suffer from a serious illness, you will likely experience a dramatic rate increase. You are also likely to see your rates increase substantially as you get older. With a whole life insurance policy, your rates remain the same for the rest of your life, regardless of your age or current medical condition. 

Take Advantage Of Living Benefits

With whole life insurance, your policy is good for much more than simply providing a death benefit. This is because whole-life policies offer what is known as living benefits. These are benefits that are designed to help you while you are still alive. For instance, a whole-life policy will build cash value and pay dividends that can even be used to help cover the cost of your insurance policy. This is something that you will not get from a term life insurance policy. 

For more information about the different life insurance options, reach out to a local service.