Whole Life Insurance Essay

Analysis: The benefits of whole life insurance policies are the policy accrues cash value, premiums unchanged during the insureds lifetime, and the insured has the right to use the cash value option (Koch, 2011). The insured can take a loan against the cash value of the policy. The disadvantages of the whole life policy would be the savings advantage of the policy is a lower interest rate than other savings accounts or invest funds (Insurance Buffs, n.d.). If the insured takes out a loan against the cash value, the death benefit will be reduced in the amount of the loan if the insure dies during the policy effective dates. The low interest rates on money that is invested, the policy is more expensive, and no investment option on where your money will be invested (Huntley, 2015).

The circumstance that I would recommend the whole life insurance policy is that you are looking to create and insure that your

The policy starts out with low premiums and then increase with the age of the insured. The policy terms for normally from 10 to 20 year policies. The disadvantages of this type of policy are the limited years of the policy, the premiums are determined by the age and health of the insured for the issuing of the policy. I would recommend this policy as if you do not have the finances to pay the premiums of the whole life insurance as those premiums are much higher than the term life insurance premiums. The death benefit of the term life insurance policy you chose at the time of purchasing the policy and that would be the benefit if the insured dies during the policy effective dates. The variations on the term life insurance policy is that you could take the money that you are saving on the premiums and invest that money into a savings account to draw interest on the saving on the