Whole life insurance is a type of life insurance policy that provides coverage to the insured individual for their entire life. That means that if you buy a Whole life policy today and maintain the premium payments in good faith, that you'll have coverage until the time of your death or until your 100th birthday, whichever comes first. If you are fortunate enough to live to be 100 years old, your insurance company will then issue you a check for the face value of the policy. The face value is the amount of money that the policy would have paid to your beneficiary if you had died, but instead, because you lived to achieve this ripe old age, they would issue it to you instead.
Whole life insurance isn't as popular today as it was several years ago. The reason for this is because it's more expensive than the more popular Term Life policies and also because a portion of what you pay into a Whole life policy goes into a savings account for you. This wouldn't seem like such a bad thing, however, in most cases you can find investment plans that will pay out better than one of these savings plans. The best thing that you could do is to get some sound financial advice from a financial planner. They can explain different methods of investing, such as stocks, bonds, mutual funds and more.
I'm not saying that Whole life insurance is necessarily a bad thing. With a Whole life policy, at least you're doing something to provide protection for your family. The only point that I'm trying to get across is that there may be better options out there for you. You could buy Term life instead and invest in low-medium risk mutual funds.
The choice is up to you. You could always start out with a less expensive Term life policy and graduate it into a Whole life policy a few years down the road, if you wish. Talk to both an insurance agent and a financial planner before you decide if Whole life insurance is right for you.
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