Whole life insurance is designed for people that wish to have insurance protection for a long period of time. This type of life insurance is a permanent life insurance that will guarantee your coverage so long as you continue to make premium payments. The premiums on whole life insurance remain the same throughout your life, and will not change. This is beneficial for younger people because having low premiums will help to make the premium payments manageable.
Whole life insurance differs from other permanent life insurance policies in that this type of insurance covers something that is certain to happen, like death. Other types of permanent life insurance generally cover a person when an unexpected event occurs. Whole life insurance also has a cash component. This cash value can grow and interest is credited to the cash value. You do not have to pay taxes on this interest, and neither do the beneficiaries. The only event that would cause you to pay taxes is if the policy is cashed in and ends up being more than what you put into the plan.
Whole life insurance is a great choice for those that are looking for long term coverage and that have dependents that you want covered as well. Many whole life insurance companies will work with you and make the insurance policy work best with your needs. There are many options when it comes to whole life insurance. Make sure you take your time and make an informed decision.