By Fran Walker fran.walker@complete-insurance-guide.com Complete Insurance Guide Columnist January 10, 2005

Whole life insurance offers peace of mind through total, lifelong coverage, along with building up cash value, which can be cashed in if your circumstances change.


As we said last week, people usually buy life insurance for their families' sake, to cover death expenses and their ongoing life expenses. Some people also buy for themselves, choosing life insurance offering tax-deferred retirement saving.

Why Whole Life Insurance?

Whole life insurance helps you to build up a nest egg of cash. A recent survey by markettools.com showed that 72 percent of Americans surveyed are concerned about their lack of cash assets should something unexpected happen.

The survey also found that 60 percent of respondents are concerned about being able to build a nest egg in order to retire in their desired time frame. Whole life insurance can address both of these worries.

The Benefits of a Whole Life Insurance Policy

• It offers peace of mind for you and your family for life
• The whole life insurance policy accumulates a cash value (usually tax-free) that you can borrow against. The face value of the policy - the amount paid at death - can also increase.
• Premiums remain fixed for life.
• You can cancel or surrender your policy at any time and receive the cash value.
• The policy may pay you annual dividends
• You can shop around for online insurance quotes

The disadvantages of a whole life insurance policy

• Policies can be expensive
• As your needs change over time, you may feel you are paying more than you need to pay.

If you are not interested in building up a cash sum, you may choose cheaper life insurance such as term life insurance. If you do opt for a whole life insurance policy, remember to consider the following:

• Pick an insurance policy with guaranteed cash surrender value from day one and no charges if you decide to do so.
• Look for policies that pay dividends.
• Look for a plan that lets you use the cash value to pay for payment breaks.
• Get an online insurance quote.

We'll look at same day life insurance coverage next week. Be sure to check back with Complete Insurance Guide for more information on this cheap and immediate online insurance type.

About the Author
Fran Walker is a freelance writer, editor and researcher specialising in educational, health, safety and domestic issues. Previously, she spent five years in marketing in the self-help, health and health and safety sectors before leaving to start a family. She now edits and writes content for the U.K. Health and Safety Executive. Fran graduated in 1993 with a degree in English Literature