Whole Life Insurance

Whole Life Insurance is 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 enrolling, 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 local licensed insurance agent so that you can learn more about it and be informed about your options. Please feel free to contact the licensed agents listed on our site for more information. Understanding the investment opportunities of a Whole Life Insurance policy will likely require the assistance of a professional.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

Joint Life Insurance Policies

Joint whole life insurance could be a great option if you are married. Learn how this type of plan benefit your family.

Read More

The Minimum Age for Life Insurance: Getting a Policy at the Right Time

Looking for a life insurance policy? Here's what you need to know, including the minimum age for life insurance.

Read More

Should I Get Life Insurance When I Buy a House?

You aren't required to have life insurance to get a mortgage, but having a life insurance policy while you are making mortgage payments could be beneficial.

Read More

Why Those Without Dependents Should Still Get Life Insurance

You may not have any dependents, but you still should get life insurance. Here's how a policy can be beneficial for you.

Read More

Who Has the Greatest Need for Life Insurance?

People with dependents have the greatest need for life insurance, but a life insurance policy can be a useful tool for anyone.

Read More

What Is Life Insurance

Life insurance policies pay money to a beneficiary upon the policyholder's death. Here's what to know when shopping for a policy.

Read More

Why Life Insurance Matters

Life insurance protects your loved ones from financial hardship if you die unexpectedly.

Read More

How Long Should I Get Life Insurance For?

Buying life insurance requires making a number of decisions. One of the most important things to consider is how long you should get life insurance for.

Read More

Life Insurance Overview

How much do you know about your life insurance coverage? Test your knowledge with this life insurance overview.

Read More