Whole Life Insurance

Conceptually, you may want to consider a whole life plan similar to buying a home. Where the cost of the mortgage would typically be higher than the cost of renting an apartment. With permanent insurance there is an equity portion of a permanent policy similar to the equity buld-up in a home. The equity is called cash value. This cash value is best used for long-term savings as there could be surrender charges if you cash in your policy within an approximate 15 year period. The cash value does accumulate tax-deferred. The type of interest you receive varies from year to year and by type of permanent insurance. I suggest you consider this after you have started to purchase your home, have an emergency fund established, saving money in your retirement plans and you have plenty of discretionary funds available each month. Term insurance is great for most of your insurance needs however permanent insurance can be extremely valuable in the long run.