Copyright 2008 The Insurance Files
    Whole life insurance is the most basic type of permanent life insurance. Whole life policies have the same premium amount for the life of your insurance. The coverage for a person with this type of policy lasts for as long as the policyholder lives. Because the policy has the potential for lasting a very long time, whole life is best for long term planning, such as income for a spouse when they reach retirement age. A great advantage of taking out a whole life insurance policy is the cash value accumulation feature. As you pay premiums monthly, a portion of the amount you pay is kept apart and grows, tax-free, for your use later on. There are three ways that accumulated money can be used: you can use it to borrow against for a loan, it can be paid out to your beneficiaries after your death, or the money can be paid directly to you. In

order to be paid directly, you must be living at age 100, or cancel your policy. Cancelling the policy would not be recommended unless you will be promptly replacing it with another life insurance policy. The primary downside to a whole life policy is the cost. The main reason for the cost is the fact that the coverage is permanent, however, compared to other permanent plans such as variable universal life insurance, whole life is fairly reasonable in terms of premium pricing. If you have decided to go with whole life insurance, get your free life insurance quote today, and if not, read about other life insurance plans.