A Whole Life Insurance Policy provides payment upon death of the insured. Typically, insureds use these policies to cover funeral expenses and provide for their families after passing. Whole life policies come with flexibility not seen with other coverage. Insurance carriers charge a fixed rate for the duration of the policy, and that premium doesn’t change in a negative way. From there, insureds protect their loved ones and gain other benefits.
For example, whole life coverage accumulates cash value over time. This cash value can be used to continue the policy without payment or take out a loan. Such a policy accumulates ample value over a couple decades, providing added flexibility for the insured. Without a doubt, these policies are flexible and useful for most individuals. A permanent policy like this costs more than term insurance but will protect an individual for life.