When you are looking for whole life insurance , the thing to consider is the tax treatment of your investment. It is a good idea to talk to a qualified professional agent who can explain in layman's terms, the difference between term and whole life insurance tax. Basically, whole life insurance tax is charged on the invested amount to term life insurance is charged on the premiums paid. Term life insurance is only applicable for a limited period. If you die during the coverage period, the death benefits are paid directly to your beneficiaries without having to pay any tax.

This type of policy provides you with a guaranteed renewable income for your lifetime. The premium of whole life insurance is relatively low when compared to term life insurance because the rates of interest are stable and the cash value grows tax-deferred until you withdraw it. The best part about whole life insurance is that there is no maturity value and you do not have to worry about paying taxes on it like you would with variable life insurance policies. Thus, there is no penalty for early withdrawal.

Withdrawal can be done at any time, which means you will not lose any money. Furthermore, whole life insurance policies are very flexible and easy to manage. They provide total flexibility with no restrictions whatsoever. There are many different whole life insurance products that are available in the market. Choose the one that is most suitable for you and your family's financial situation.

As a general rule, the whole life insurance policy has higher premiums than variable and convertible. Moreover, the premium of whole life insurance is not affected by age or health. You can borrow against it at any point of time, which means you can reduce the premiums every now and then. However, the way you choose your insurance provider is extremely important.

You can go in for a policy that provides a lower rate of interest on a monthly basis or a quarterly basis. The rate of interest is based on the risk involved, which can be for a single person, a group of people or a whole family. You can save a large amount of money by paying the premiums in bulk. Thus, the whole life insurance premium can be paid in three years, even when you are not working and earning.

In order to get a good whole life insurance rate, you need to have sound financial status and a good credit history. Further, your choice of insurer should be based on the kind of plan you choose and its term. If you choose a long-term plan, you can easily pay the premiums over a period of 30 years without any problems. However, if you opt for a short-term plan, you will have to pay high premiums. Always remember that the cost of whole life insurance depends on various factors, including the age of the person and the amount of insurance coverage you require.

Another way of reducing the cost of the premiums is by increasing the deductible. Increasing the deductible will automatically reduce the rate of insurance premium. You can also make use of tax-free policies. If you do not pay the premiums for three consecutive years, the benefit will be taxed and hence the tax-free benefit will become available.

Another way of getting a low premium is by buying a variable life insurance plan. If you purchase a universal or variable plan, you can save a lot of money on the premiums. People often think that these plans are expensive. But if you calculate the amount of premium and compare it with the amount of cash you stand to gain, you will find that these plans are very affordable. Therefore, whole life insurance is a great investment option that offers tax-free savings for all kinds of individual needs.