Life insurance advantages?

Some of the advantages of life insurance are:

1. If a breadwinner dies, and has enough life insuance, he/she could know that it will give his/her family adavantages of having food, clothing, and shelter, and all the necessities of life; keeping the family in their "own world", financially speaking, and not have to depend on charity.

2. There will be funds to pay the funeral costs, outstanding debts, and to provide for education for the children.

3. Whole Life (WL) will build cash values which can be borrowed from, or used as collateral for a loan. Term WILL NOT.

4. WL is kind of a "forced savings" vehicle, because it does build cash value. Most people can't save on their own, but could through a WL policy, especially if it pays dividends, and has a Deposit Fund Rider. Most savings plans fail, because it is usually "put and take, put and take". They have no systematic way of saving money.

5. WL also has other built-in benefits called non-forfeiture values. In addition to the cash or loan value, after the cash has started building up, if for some unknown reason you can't make the payments, you can take reduced paid-up insurance (Paid up for life), or extended term for a specified period of time. The cash value could pay for extended term insurance for several years depending on the amount of cash value.

6. In a WL policy, you OWN permanent insurance. With term insurance, you are the owner of the policy, but are basically RENTING the coverage for a specified period of time. Like renting a house or car, it builds no equity.

7. WL, as well as term, has an optional benefit of Disability Waiver of Premium (DWP), which if the insured becomes totally disabled, usually after 6 months, the premiums will be waived, and the policy will be kept in force up to age 60, or to the expiration of the term up to age 60. The WL policy will continue to build the cash value and other non-forfeiture values. The term WILL NOT. Term has no non-forfeiture values. Although it may have a guaranteed renewable provision. If disabled, the insured may or may not have to pay the renewal premiums, depending on the policy.

8. WL has another option called Automatic Premium Loan (APL). If you are out of work, or you just run short of money temporarily, you can have the premium payments paid from the available cash or loan value, to keep the policy in force. Later, you can pay the loan back, plus interest. If death should occur, the loan and interest will be deducted from the proceeds. Term insurance DOES NOT have this option.

9. If you need more life insurance than you can pay for with a WL policy, you can add a term rider to increase the death benefit. You CANNOT add a WL rider to a term policy.

10. There is an advantage of buying as much insurance as one can while he/she is young. This will insure their "insurability", because if there should be changes in health, he/she may be limited in being able to purchase insurance later on, or be completely uninsurable.

11. Life insurance is "Love Insurance". I say this because you buy insurance because you have special people in your life and you love them, and want to provide for them if you are not here to do so.

The Holy Bible says in 1 Timothy, 5:8

If a man does not provide for his relatives, and especially his immediate family, he has denied the faith, and is worse than a non-believer.

Hope this helps.