Are you having trouble deciding if you should get a whole life insurance policy? If so, it will help to know some of the benefits this policy can provide to you and your family.

Your Policy Has A Cash Value

One thing that you may not know about a whole life insurance policy is that it has a cash value on it. You will earn interest on the money you pay into the policy, and you also have access to the money in some situations. While every whole life insurance is different, you may have the ability to make an outright withdrawal from the policy or take out a loan. This means that all the money you pay into the policy is not gone the moment you make a premium payment since there is still a cash value that you have access to. 

Keep in mind that your policy may differentiate between how money is handled when taken out as a withdrawal or a loan. If it is a withdrawal, that money is gone and you no longer have access to the funds. If it is a loan, some policies allow you to still receive compound interest on the whole value of the policy as long as you pay back the loan by a certain date. 

You May Receive Dividends

Many whole life insurance policies will pay their customers a dividend each year, which is when they return a portion of the premiums that you pay because the insurance provider has been profitable. Since this money is classified as a dividend, know that you are not taxed on that money when you receive it. You can use the money however you want. For example, you can put it right back into the whole life insurance policy to pay off future premiums, keep the money, or even buy more whole life insurance.

You Can Add Additional Riders

You may be looking for specific add-ons to your whole life insurance policy that allows you to withdraw money for specific needs. For example, a common rider is a critical illness rider, which allows you to use life insurance money to pay for medical expenses related to a critical illness as you need them. Your beneficiaries don't need to wait until you pass away to cash out the policy and then pay off the bills since they can use the money right away. 

This is just an example of one type of ride you can request, but there are many others out there that could benefit your specific situation.