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Whole Life Insurance

Who Needs Whole Life Insurance?

Whole life insurance can help to keep you and your family financially secure. If you’re looking to protect your loved ones and build a savings plan for their future, then a whole life policy may be right for you. This type of policy has a number of benefits as a life insurance solution, and can be used as a savings and investment tool in addition to providing death benefits to your beneficiaries.

When you work with an independent agent in the Trusted Choice® network, you will get the unbiased help you need to make an informed decision. Independent agents can research many life insurance companies and help you decide what is right for you. Contact a local agent to get personalized assistance today.


Life Insurance Facts

  • Whole life insurance is the oldest form of permanent life insurance
  • Only 61% of adult American males have some form of life insurance
  • Only 57% of adult American females have some form of life insurance coverage

Is Whole Life Insurance Right for You?

Whole life insurance is one of the types of permanent life insurance available. It is quite different from term insurance, which covers you for set number of years and only pays death benefits to your beneficiaries.

Whole life insurance covers you for your entire life. In addition to paying death benefits, it also has a cash value accumulation feature which grows over the life of the policy.

Whole life insurance is also different from universal life insurance, which offers more flexibility but fewer guarantees. There are several options for ways to purchase whole life insurance. The main features of this coverage include guaranteed rates, which are not available in universal life insurance.

Whole life insurance might be right for someone who:

  • Is young and just starting out in life
  • Wants both life insurance and a savings plan
  • Wants to use life insurance as a financial planning tool
  • Wants to protect family members from a loss of income as a result of the policyholder's unexpected death
  • Wants to pay off a mortgage, outstanding debts, loans or future debts, such as children’s college tuition
  • Wants to pay for death and funeral costs
  • Wishes to create an estate or trust


Features of Whole Life Insurance

  • Guaranteed interest rate: A guaranteed rate of return for your cash value accumulation that does not change.
  • Guaranteed insurance premium: Your premium amount, which you pay monthly or annually to keep the policy in force, is guaranteed to remain the same during the life of the policy.
  • Guaranteed death benefit: The face value death benefit amount you choose is guaranteed.
  • Cash value accumulation: The tax-deferred cash value which you build in the cash value accumulation portion of the policy is guaranteed.

How to Find the Best Whole Life Insurance Quotes

Whole life insurance rates vary quite a bit from one insurance company to another. Each life insurance company uses different algorithms to determine premiums based an individual's health risks, age and other factors. For this reason, it is important to compare rates from several different insurance providers before making a choice.

To compare several different whole life insurance plans and rates, talk to an independent agent in the Trusted Choice network who specializes in life insurance. One of these local agents can research and compare several life insurance companies and and help you find the right policy for you.


What Can I Do with the Cash Value?

The cash value that accumulates in a whole life insurance policy provides you with several choices, which include:

  • Allowing the cash value to continue to accumulate until your passing, and bequeathing it to one or more beneficiaries if you do not need it for retirement expenses.
  • Withdrawing a portion of the cash value to use as you wish during your retirement years.
  • Borrowing the cash value accumulation, and potentially repaying it later with interest.

Because of the different options available, a whole life insurance policy can be an excellent tool for structuring your finances in retirement, as well as planning your legacy.


Types of Whole Life Insurance Policies

There are several different types of whole life insurance policies. They include “non-participating whole life policies,” which tend to be more affordable, and “participating policies.” The differences between these polices are as follows:

  • Non–participating whole life policy: This is the standard guaranteed policy. With a non-participating policy, you don’t have to do anything except pay the premium. Everything else in the policy you purchase is guaranteed.
  • Participating whole life policy: This type of policy is dependent on the divisible surplus of the life insurance company and the dividends it pays out. The dividends are not guaranteed and depend on the investment performance of the company. You can choose how to use these dividends, such as buying additional insurance, leaving the dividends to accumulate, using them to reduce your premiums, or taking the dividends payable as an annual cash payment.

Whole Life Insurance Premium Options

Some life insurance companies offer options for payment of your whole life insurance premiums. These options include:

  • Level premium: A regular monthly or annual premium which you pay your entire life.
  • Limited premium: A premium you only pay for a specific period of time.
  • Single premium: A single premium is a one-time lump sum payment.

Choosing the Right Life Insurance Policy for You

Whole life insurance is an all-inclusive insurance and savings plan that can offer long-term financial protection for you and your family. It is important to weigh the pros and cons of this coverage against other insurance vehicles and choose the plan that best meets your needs. These decisions are unique to each individual.

To compare whole life insurance with other forms of permanent life insurance as well as term life, talk to an independent agent in the Trusted Choice network who specializes in life insurance and can provide the complete information you need to make an informed choice. Contact a local agent today to get started.

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