Why consider whole life? These days, we see a lot of ads for term policies. Consumers are attracted the lower premiums of these temporary policies, and it seems logical to spend less money for more coverage! But many people still want whole life, so we need to explore the benefits.

For a quick read about whole life, turn to whole life insurance explained.

The simple fact that whole life is permanent should make the first advantage obvious. The policy will cover our lives as long as it is paid for or paid up. That means we will not lose coverage when a policy expires no matter how much money we have spent in the past.

The rates will also stay level, and so will the policy death benefit. This means that we do not have to worry about rate increases or benefit reductions. This is not always true of term policies. Rates may not be guaranteed for the whole term, and the death benefit may decrease.

We can also use a policy to pass on money. The death benefit is usually not taxed either. It is comforting to be able to pass on money without also passing on a tax burden. This is why these policies are often used as a way to pass on estates to spouses and children.

And the final advantage of permanent life insurance policies is the fact that they can be used to build up an asset. This benefit can be a great financial tool even if your beneficiaries do not collect the death benefit.

If you have built up a policy cash account, this money can actually be used while you are alive. You can get the money back if you surrender your policy. You can also borrow against this value while still keeping your policy in force. Some policies will let you use your cash value to make payments for awhile.

Another use for permanent life insurance has become popular lately. This is called a life settlement, and it means that investors purchase the policies for cash. The cash settlement will usually be less than the death benefit, but much more than the cash surrender value. This allows older people to sell unwanted life insurance for money they can use to help them enjoy their lives.

We know that you hear a lot about the advantages of term insurance. But before you choose, be sure and explore the pros and cons of term vs. whole life.

Learn more about the best types of life insurance.

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