New answer on: Who Benefits From Whole Life Insurance?

By: David Pipes

David Pipes — Fri, 07 Mar 2014 16:35:12 +0000

We who purchase whole life insurance consider our beneficiaries as the ones who ultimately benefit. However, there is a vast pool of people who benefit. They are the other people the company insures because you shared you’re their risk. Of course the company and its employees benefit for administering the policy. Ultimately the economy of the country benefits as mortgages are let, loans are made and people have money in retirement.

By: Peggy Mace

Peggy Mace — Fri, 07 Mar 2014 15:47:19 +0000

In addition to the wonderful answers given by Carl, I would add that people who are looking for permanent coverage also benefit from whole life insurance. Whole Life stays in effect for your "whole life", whereas Term Life only stays in effect for a "term" of a your life. So anyone who wants to use their life insurance for funeral expenses, passing their inheritance to their children, giving to a charity, or other purposes that will not go away after a "term" of time, can benefit from Whole Life insurance.

By: Carl Busseau

Carl Busseau — Fri, 07 Mar 2014 08:44:43 +0000

There are multiple parties that benefit from whole life insurance. It benefits the insured because whole life insurance builds cash value and earns a guaranteed interest rate. It also helps the insured sleep well at night knowing that in the event of premature death, his beneficiary will receive a death benefit. The insured can also take a tax-free policy loan out of the cash value since whole life is one type of cash value accumulating life insurance. The most direct benefit of whole life insurance is the death benefit payable to the beneficiary tax-free upon death of the insured.