If you are seeking a longer term coverage, whole life insurance provides death benefits that are guaranteed for the insured’s lifetime. They are often used for estate and legacy planning. At the time the contract is signed, a premium is established and remains unchanged for the duration of the policy. The premium does not increase over time.
Yes, the premiums are initially higher at the onset of the policy, but result in lower overall costs during the person’s lifetime as compared with renewing a term policy.
There are other advantages to whole life policies. They provide a cash value. These savings accumulate over time and can be used for a loan or to use the funds if the policy is surrendered prior to the death of the insured. Some offer dividends paid by the insurance company. These dividends can be applied to increase the amount of coverage, be paid out, or add to the cash value of the policy.