As is obvious from the name, whole life insurance is a permanent life insurance covering the whole life of the policy holder with timely premium payments, as long as the policy holder is alive. Whole life insurance is apt for those who plan on long term goals.

Though term life insurance has gained popularity due to various reasons, whole life insurance cannot be set aside entirely as it has a lot of advantages to its credit. Primarily whole life insurance guarantees the death benefits that never decrease and nonfederal income taxes are charged upon death and lasts an entire lifetime which is a good advantage.

Premiums are generally a little higher than a term life insurance and as the age progresses, the annual premium tends to lessen. As against term life insurance which has no cash value, whole life insurance has some money stored as cash value. If the policy is terminated, accumulated guaranteed cash would be paid. It is also feasible to take loans against the whole life insurance policy. The guaranteed cash values can be used for emergencies and temporary needs. The cash value increases as the premiums are paid.

When a policy holder has a participation in whole life insurance, he or she is eligible for earning dividends which would be paid in cash. This cash can be either used to keep within the policy to generate interest or used to minimize the premiums. All the cash that are accumulated or borrowed are on a tax free basis except when it is withdrawn.

Whole life insurance policies can never be struck off by the insurance company. As the whole life insurance policy gets older, the surrender value becomes more or less the amount that has been paid and thus, the cash value along with the dividend far exceeds the premium that have been paid.

The dividend from a whole life insurance can also be used to purchase paid up additions that are small, fully paid up whole life policies. Whole life insurance quotes are available online which give the convenience of getting the policies instantly and urgently. The encouraging factor is that almost all reputed companies are offering whole life insurance quotes online and it becomes easier to compare the various offers and choose the best suited.

Whole life insurance is not only a tool to protect the dependents after the demise of the policy holder; it is also a way of saving for the future and has an emotional attachment to it. Hence, sufficient thought and time have to be spared to get the best quote and option available and decide accordingly, to ensure a secure future and a comfortable present life.

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• Term Life Insurance: Why It’s the Most Preferred Choice

Life insurance can be of two types-whole life insurance and term life insurance. As the name suggests, whole life insurance covers the whole life, as long as the policy is held and is beneficial only on the demise of the policy holder. Obviously, the benefits of whole life policy depend upon the value of the policy at the time of death of the policy holder. A cash value on the tax defer basis is also accumulated. The dividends are paid throughout the life of the policy.

On the other hand, term life insurance, is evidently purchased for a certain period or term. If the death occurs within that period, an agreed upon amount to the beneficiaries is paid. The payment is not paid if the premiums are not paid or if the death occurs after the expiration of the term. Also, term life insurance has no cash value.

The premiums for term life insurance are low in the beginning of the policy and increase over time. It is not feasible to borrow against the cash value since cash value does not exist in term life insurance, unlike in whole term life insurance. The coverage for a term life insurance varies from five to thirty years and the longer the term, the more expensive the policy will be.

Term life insurance quotes can be obtained from multiple agents and there are lead generating websites that help in getting the quotes. Term life insurance quotes can be obtained instantaneously through websites from companies that vie with each other and alleviate the need to approach the agents for different quotes. Monthly premiums that suit the budget can be obtained for a term life insurance policy and it offers the feasibility of switching over to whole life insurance policy after a period of time.

Universal life insurance that covers everything can also be accomplished. Some of the companies may issue a policy without any medical examination depending upon the answers given to questions relating to the age of the policy holder, occupation and health and evidently, younger age gets a better quote.

Normally, term life insurance is cheaper than whole life insurance and more often than not, the difference between the two values in permanent life insurance and term life insurance is utilized to invest and make a profit. Hence, term life insurance is considered to be profitable and cheaper.

Term life insurance can be bought in increments of ten year term and twenty year term and the premium paid goes directly towards paying for insurance and nothing else and is rightly known as pure life insurance. The objective of term life insurance is to reduce financial risk for a fixed period and is a temporary life insurance.

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