Every person should have enough life insurance to take care of his or her family in case he or she becomes deceased. But which type of insurance is best? Most people end up going with term insurance because it is cheaper, but whole life insurance rates aren’t much higher. Whole life policies also have several advantages.

Set Premiums
Whole life insurance rates are not expensive, and once the policy is purchased the premiums will never increase, no matter how long the insured may live. Premiums for term policies, on the other hand, increase each time the policy is renewed.

No Possibility of Cancellation
Awhole life insurance policy cannot be cancelled as long as the insured continues making payments. It does not matter how old the person becomes or what kind of health conditions he or she may develop; the policy is guaranteed to remain in effect. Term policies can often be cancelled and there is no renewal guarantee in the contract.

Family Health History
Many people have family histories that make it likely they will develop certain illnesses. If this should happen it would be either impossible or very expensive to purchase life insurance, but if they have previously bought a whole life policy they will not need to worry about it. Many policies also allow the insured to increase the benefit level at any time without going through any additional health testing.

Cash Value
Whole life insurance policies often build up a cash reserve which is tax-deferred. If the insured stops making payments or surrenders the policy they receive the cash reserve in a lump sum payment.

An End to Payments
Many whole life policies have a clause that stipulates the policy will be paid in full after a stated number of years. After this happens the insured stops making payments but the benefit is still guaranteed.

Disability Waiver
Many whole life policies contain a disability waiver that continues to pay the premiums if the insured becomes totally disabled and can no longer work. This allows the insured to keep the policy without financial hardship.

Access to Benefits in the Event of Illness
A number of whole life policies will allow the insured to access death benefits if they acquire a chronic illness or become terminally ill.

Protection from Creditors
A number of states have laws that protect whole life insurance benefits and cash reserves from creditors and lawsuits.