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

Define Whether Whole Life Insurance Is Right for You

Shopping for a life insurance policy? It’s important to understand what defines whole life insurance, as compared to term plans. Read on to learn more.

Read More

Is Whole Life Insurance a Smart Purchase?

Whole life insurance policies build cash value, but they tend to be more expensive than term life insurance.

Read More

Whole Life Insurance Pros and Cons

What are the pros and cons of whole life insurance? In this article, we’ll break down this form of life insurance coverage.

Read More

Benefits of Whole Life Insurance

Whole life insurance stays in effect for your entire life and also accumulates cash value over time.

Read More

Understanding Term and Whole Life Insurance

Term and whole life insurance are two of the most popular kinds of life insurance policies. Read on to learn how they work.

Read More

Whole Life Insurance Coverage

A whole life insurance policy can be used to cover a wide range of expenses, from funeral and burial costs to your child's education.

Read More

How Does Whole Life Insurance Work vs Term Life

Whole life insurance is a type of permanent life insurance policy that accumulates cash value over time.

Read More

Finding the Right Whole Life Insurance Policy

There are several different variations of whole life insurance. Read on to learn about different policies and how to determine the right one for you.

Read More

Life Insurance Pros and Cons

Learn the pros and cons of term life insurance and whole life insurance to ensure you choose a policy that works for you.

Read More