What Is Whole Life Insurance?

Define Whole Life Insurance

• Permanent Life Insurance – The policy will cover you as long as it is kept in force. (Paid for or paid up). Term life insurance policies expire after a set period of time.
• Premiums and Death Benefits are Fixed over the life of the policy.
• Life Insurance Cash Value can be accumulated over time which can be borrowed against or cashed in. Part of the premium pays for insurance, but the rest can build up the cash value which can also earn interest or dividends. Some people think of whole life as a combination of insurance and savings.
• Whole life is the simplest form of permanent life insurance, and it is also the traditional form of life insurance.

For more information, you can see this article: Whole Life Insurance Explained.

Who Buys Whole Life Insurance?

A variety of people find that whole life insurance is a good solution for them. In fact, permanent life insurance policies have been designed for children, younger adults, and senior citizens. While term coverage may be cheaper, it will expire and does not, in general, build up any cash value.

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Here are some common reasons that people buy whole life insurance:

• Seniors plan for tax free wealth transfers or final (burial) expenses. It is very easy to find no medical exam seniors life insurance that simple to quote and apply for.
• Children’s whole life insurance policies are usually very cheap. They will give the child a gift of lifetime security, while building up a cash value that can be used later for important expenses life education or homes.
• Young or middle aged adults may choose to purchase a larger term policy to cover their homes and families, while buying a smaller face value whole life policy to carry them through their retirement years.

As with any form of insurance, it is important to understand your own personal and financial goals, and then to determine which type of life insurance is best  for your family. We try to make it easy to find local plans and quotes, or connect with a qualified local insurance agent with our free insurance rate quote forms!

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