Whole vs Term

Most people assume that whole life insurance is a policy that you have to pay every month so as to secure your family after you die. Whilst part of it is true, there are still other things that you can do with this type of plan. When paying a premium, part of it goes into a reserve fund that is also called the cash value of the policy. As the years go by this cash value accumulates into a large sum that you can borrow.

A whole life insurance policy can be used for many different things that include:

* Paying your final expenses and taking care of your family financially

* Using the cash value to fund college tuition for your children

* Leaving money for a favorite charity you have

* Using the cash value to help finance a new business start-up

* Providing coverage for a key man in a business

* Using it for estate planning

The list above is created just to give you an idea as to where you can use the money. There are a variety of ways to use this type of life insurance. So if you think a life insurance policy was only used in the event of your passing, then you are misinformed.