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Old 08-19-2008, 10:51 PM
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When is it generally appropriate to consider buying a whole life policy?

I was wondering when is it generally appropriate to consider buying a whole life policy? Your suggestions would be really appreciated!

Thanks a lot..



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Old 08-20-2008, 12:19 AM
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Advantages of Whole Life Insurance.
Whole life insurance is generally used when in many circumstances, and the following represent some of the more common advantages or uses of Whole Life Insurance Policies. These are as follows;

1. Whenever there is a need for life insurance to be permanent.

2. When an individual wishes to build up a cash value within the policy. The cash value increases every year and the increase is dependent on the performance of the Stock Market.

3. When an individual needs Whole life insurance as a part of their estate tax planning. Here it is envisaged that after the decease of the Owner, the Estate Taxes are paid from the Life Insurance proceeds.

Disadvantages of Whole Life Insurance.

1. The "premiums for whole life insurance are considerably higher than premiums you would pay for same amount of term insurance".

2. A lot of people generally cancel their Whole Life Insurance Policy after paying premiums for up to 6-7 years. Therefore, it is imperative that if you intend to keep a whole life insurance policy in place for your entire lifetime that you can easily afford the premiums and that it is an integral part of your estate or retirement plan.

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Old 05-19-2011, 04:49 AM
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I have also similar question for the tax guru and thanks for your appropriate reply with details.
Home loans bangalore


Last edited by Grantes : 05-21-2011 at 02:40 AM.


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