While there are numerous positive viewpoints to purchasing a whole life insurance policy, there are additionally a few disadvantages which your insurance policy agent does not want you to know regarding this type of insurance. Enlisted below are the cons or the negative side of having whole life insurance coverage.
The insurance policy will not earn dividends immediately the minute you avail of the insurance policy. It only starts earning after 24 or 36 months of continuous and diligent insurance premium payments.
Whole Life Insurance monthly premium is considerably priced higher than any other type of insurance. Before purchasing one, verify that the cash value and durability of the whole life insurance policy validate the extra premiums paid just like with life insurance policy with similar benefits in case of death.
Whole Life Insurance policies have a so called "surrender phase": A designated timeframe where you must keep your cash with the insurance agency before pulling out your policy. On the off chance that you wish to totally cancel it before the end of the surrender phase; you will be required to pay a prescribed penalty, generally around 10% of the insurance policy cash value. Regularly a surrender period is 5 to 10 years, yet you ought to peruse the strategy deliberately to verify you see to what extent this period is on your specific whole life insurance coverage.