Whole Life Insurance

Whole Life Insurance is also a type of Permanent Life Insurance that has a specific face value and also accumulates cash value that can be considered part of your investment portfolio. It is more expensive than Term Life Insurance because of its cash value, which can even be borrowed against by the insured member. Although premiums can be expensive, they generally remain level and are payable for life. Since premiums are based on age at time of enrollment, you can save premium money by purchasing a policy when you are younger. These type of policies, unlike Term Life Insurance, will remain in force for as long as you continue to make your monthly premiums.

A Whole Life Insurance policy provides you with a fixed amount of benefits and also a fixed amount of premium or payments that you have to make to the life insurance company. There are many benefits to owning a this type of policy such as dividend payments, cash value, secured asset for loan collateral, cash payment for final expenses such as burial expenses, estate and probate taxes. Moreover, Whole Life policies can be cancelled and you can receive a rebate for any cash value that has been accumulated on that policy.

There are several different traditional types of Whole Life, each with their own unique benefits. In a Participating Whole Life Insurance, the insurance will share excess profits with the policyholder in the form of dividend payments. Non-Participating Whole Life Insurance has no shared profit benefits and the value of the policy is determined and fixed when the policy is written. An Indeterminate Premium Policy is like a Non-Participating policy, but the annual premium can be variable. Another type is the Limited Pay policy, in which you may only be required to make a premium payment for a specific number of years and the policy will continue to provide benefits throughout your lifetime. Economic, Single Premium and Interest Sensitive are other types.

We recommend you speak to a representative or life insurance agent from an insurance carrier so that you can learn more about it and be informed about your options. Understanding the investment opportunities of a Whole Life Insurance policy will likely require the assistance of a professional.

*Disclaimer: All quotes and rates are for illustration purposes. Actual premiums and coverage will be based on age, gender, health history, certain underwriting criteria, state of residence, and tobacco usage. Certain policies may require a medical exam. Not all policies or companies are available in all states. Advertised products are for US residents only.