Whole life insurance is life insurance that you purchase and it covers your for your entire life as long as you continue paying the premium. Whole life insurance also offers the option of cashing in your benefits before you die, but this ends the life of the policy. Many people refer to whole life insurance as an investment because it accumulates money that you can withdraw in an emergency.
Whole life insurance is actually a very poor life insurance product. The rate of return on the investment is very low. You can purchase more insurance and then invest the difference in cost with a term life insurance policy and you will come out ahead financially.
If you currently have a whole life insurance policy you may want to consider cashing it out and getting a term life insurance policy instead. Before you do this make sure you already have the term life insurance policy in place. Additionally be prepared to pay taxes on the money that you cash out. You can set aside the money for taxes when you cash out the policy.
If you have had a disease that makes it difficult or impossible to purchase life insurance, and you already have a whole life insurance policy in place you should keep it. Life insurance is there to help your loved ones after you have passed away, and you should not cancel it just because it is not a good deal or investment if you cannot get other life insurance.
