Whole life is a permanent type of life insurance. That means coverage is in place for life. As long as your premiums are paid, your beneficiary will receive the benefit amount upon your death. Policy premiums for whole life are also guaranteed for life, meaning they stay the same throughout the time the policy is in place. Keep in mind that the younger you are when you purchase an insurance policy, the more affordable it will be.
Protecting your family
During your working years, the death benefit can protect your family by replacing your income. After you retire, that same benefit allows you to leave a tax-free inheritance for your loved ones or your favourite charity, pay for your children’s education, or even pay future premiums on your policy. It can also be used to help cover funeral expenses and taxes.
You can also buy whole life insurance for your child or grandchild when they are young.
It protects their insurability no matter what happens with their health or career choices in the future;
The rates are much lower and your child or grandchild can have permanent insurance coverage for life paid off in just 20 years; and
The cash value can be a valuable asset they can use to pay for their future education costs.
Whole life insurance also provides a way to save for the future. The premiums you pay are invested. The income it earns creates a cash value for the policy, which you can access in the future. It can be used in many ways such as to supplement your retirement income or help pay expenses.