advantages-and-disadvantages-of-whole-life-insurance

life insurance for kids
life insurance for kids

Let’s face it, most people looking for life insurance for children end up buying a Gerber Grow Up Plan and are done with it. After all, Gerber offers a great whole life policy for kids.

However, we hope to bring about a new perspective when deciding on the best policy for children. This perspective posits life insurance as different than death insurance. And it can revolutionize not only how you view life insurance, but also how you view money.

And the good news is kids qualify for no exam life insurance, so your children to not have to undergo a life insurance blood test.

Here is the basic premise of this article: a properly set up cash value life insurance policy can create incredible life giving benefits presently and down the road for your child.

Yes, there is also a death benefit, but that is not the primary reason to get life insurance on your kids. We are talking about financial benefits that are brought about with a properly designed dividend paying whole life insurance policy from a mutual insurance company. Advantages and disadvantages of whole life insurance

Positives

  • Your beneficiaries are covered for life. This is a strong thing to consider. For most people, having whole life insurance gives them the comfort in knowing that they do not have a time limit and if anything tragic should happen, at any time, their beneficiaries will be covered. When trying to decide between term and whole life insurance, one must surely keep their beneficiaries in mind.
  • Cash Value. The fantastic advantage of whole life insurance is that it doubles as an investment. If no one has to file a claim, then the money that is paid every month isn’t wasted and can be used as cash value. This is one of the prime advantages of whole life insurance, especially for the worrisome person that doesn’t want to waste their money.
  • Additional investment and savings vehicle. For the lucky ones that have such a high income that they maxed out their tax deferred investments, then whole life insurance is definitely something to look into as an additional investment and savings vehicle.

Negatives

  • The Cost. The price of whole life insurance premiums is much higher than term life insurance premiums. This is especially important for the budget cost individual, such as young people just starting out their careers.
  • May not need it. Of course there is a chance that in the end, you may never need it and you could come away wasting money throughout your life. However, it’s usually better to be safe than sorry with these kinds of things.
  • Depending on your insurance company, investment options may be minimal. Some insurance companies do not have a wide range of investment options.

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