If you are looking into life insurance, you have two basic choices. You can choose term insurance or whole life insurance.
Term insurance offers cheaper premiums. With that in mind, why do I love whole life insurance? It may have something to do with the reason I love getting a big tax refund. You see, I know I could change my deductions and get more on each pay, but I kind of like getting that big tax refund. I pay a little more every payday but it pays off each April.
It is the same way with whole life insurance. I may pay more in monthly premiums, but there are two VERY big plusses for me. One is that whole life builds cash value, making it virtually a savings account for me. The other reason is that I know my premiums won’t ever rise. Those are two pretty good reasons. But there’s more.
I have a tough time saving money, so whole life has that built in feature. I pay the premiums and a portion goes into a cash value. It also allows me to access to my built up cash value via policy loans. If I ever need some extra cash on the cheap and don’t want to go to a bank, a whole life policy could be the ticket.
Yes, I’ve heard the expression “buy term insurance and invest the difference.” For me, I love whole life insurance because I am more likely to spend the difference. Whole life helps me save it.