What is the main advantage of whole life insurance compared to variable life insurance?

Whole life insurance offers guaranteed death benefits and fixed premiums, which is its main advantage compared to variable life insurance. In whole life policies, the insurer guarantees that the policyholder's beneficiaries will receive a specified death benefit upon the policyholder's death, regardless of market fluctuations or the performance of underlying investments. This provides a sense of security and predictability for policyholders and their beneficiaries.

Additionally, whole life insurance comes with fixed premium payments, meaning the policyholder can budget for these costs without worrying about increases due to changing market conditions, unlike variable life insurance, where premiums can fluctuate based on investment performance. This stability is a significant factor for individuals seeking long-term financial planning and peace of mind concerning their insurance coverage.

While variable life insurance allows for potentially higher cash value growth through various investment options, this comes with higher risk and variability. Therefore, the key trait of whole life insurance is its reliability and guarantee, making it suitable for those who prioritize certainty in financial planning.