We know that increasing whole life insurance is a life insurance with increasing sum insured that can be increased for life. Since increasing sum insured whole life insurance can be increased, its corresponding cash value is also increasing. This feature makes increasing whole life insurance have both protection and financial management attributes. In addition, in recent years, bank interest rates have been continuously lowered, and many people choose to put their money in products like increasing whole life insurance.
So, what are the advantages and disadvantages of increasing whole life insurance? Who is suitable to buy it? Let’s talk about it today!
1. What are the advantages of increasing whole life insurance?
So, what are the advantages of increasing whole life insurance? The main points are as follows:
1. The cash value is written into the contract and the added value is determined
The cash value of the increasing whole life insurance is written into the contract, and it is clear how many times the cash value can be returned at the end of each year. Therefore, it is certain, there is no fluctuation, and there is regulatory protection.
2. Insurance can be reduced or refunded, and policy loans are supported, with high flexibility
Increasing whole life insurance is relatively flexible. If you need money urgently, you can get back the cash value by reducing or canceling the policy. You can also obtain emergency funds through a policy loan. It is highly flexible.
3. Accurate inheritance of wealth can be achieved
When purchasing increasing term life insurance, you can designate a beneficiary and stipulate the beneficiary’s share of the benefit, thereby achieving accurate inheritance of wealth and avoiding unnecessary troubles and legal disputes such as inheritance by will and statutory inheritance.
2. What are the disadvantages of increasing whole life insurance?
What are the disadvantages of increasing whole life insurance? The main ones are as follows:
1. There may be restrictions on insurance reduction
Withdrawing money from increasing term life insurance is achieved by reducing the policy, but some reductions have no limit, while some products have a 20% limit on reduction. At this time, if you want to use more money, you need to cancel the entire policy.
2. It takes time for the current price to exceed the premium paid
It takes time for the current price to exceed the premium paid. Early withdrawals may result in losses, and it requires long-term holding to maximize the compound growth of its cash value.
3. What kind of people are suitable to buy increasing term life insurance?
Who is suitable to buy increasing whole life insurance? I think it is safe enough and can also force you to save money, so it is suitable for everyone to buy insurance. After all, it is not easy for us to make money, so safety should be ranked first, and the cash value of increasing whole life insurance is written into the contract, which is safer.
If you want to buy increasing term life insurance, you can come to Kaixinbao Insurance Network, which has a wide range of products and big brands and is trustworthy!
