Whole life insurance is permanent, lifelong coverage designed to cover individuals until their deaths. This type of insurance has a cash value feature that grows at a guaranteed rate every year. This implies that it can be used as savings by taking loans against the policy’s cash value or making withdrawals on retirement. It is a popular option for those who wish to secure their loved ones financially. However, it may not be ideal for everyone. Pros and cons of whole life insurance Before understanding why whole life insurance isn’t right for most people, one should know about its pros and cons: 1. Pros of whole life insurance Like any other type of insurance, whole life insurance has several advantages, including the following: Is lifelong One advantage of whole life insurance is that it lasts for the entire lifetime as long as premiums are paid. Has death benefits Whole life insurance provides a death benefit to the beneficiaries, irrespective of when a person passes away. This does not vary depending on the policy’s market investment; instead, it is guaranteed to pay out at least the face value of the policy. Comes with fixed premiums With whole life insurance, a person is aware of the premiums that have to be paid for life, unlike other types of insurance, where the premium cost may increase later.