The Return of Whole Life Insurance

Over the last few decades, term life insurance seemed the best way to provide for your family if you die. It was affordable and paid out well, but after years of renewing policies that did not guarantee benefits, people have turned back to whole-life insurance coverage.

Whole life coverage has gotten a reputation for being a little expensive compared to term life plans. But then again, your money stays with an entire life plan.

There are many reasons why these life insurance policies have recently become so popular.

First of all, interest rates are presently at all-time lows. Still, whole-life policies payout guaranteed prices far beyond what could be earned in a savings account. Or a certificate of deposit with a similar duration. Taxes do not apply to the cash value growth of a whole-life policy.

Also, insurance companies offer various whole-life plans that can help policyholders reinvest dividends and increase interest on their cash value, further protecting the investment.


Taxes are another reason people are turning to whole life insurance. Although taxes on capital gains and dividends have been recently reduced, the proceeds of whole-life policies are generally not taxed, even when the benefactor dies.

Overall, whole-life policies can do things that term life coverage cannot offer. For instance, once premium payments accrue enough cash value in the policy, premium costs may be reduced or even eliminated without affecting the benefits or coverage terms. As a policyholder, you can borrow money from your whole life policy’s cash value without going through a lengthy loan approval process. And since it’s the policyholder’s money, there’s no rush to pay it back.


Life has few guarantees, but people can count on the benefits of whole-life coverage. Every time a term life policy gets renewed, the process of investing begins anew. Not to mention that term life coverage can be canceled if a missed or late payment. Watch your money grow, and rest assured that it will be there during times of need with whole life insurance.