FAQ

What is whole life insurance?

Whole life insurance quotes provide estimates of the premiums on a policy with constant death benefit coverage for the policyholder's lifetime. Whole life provides both a living death benefit, or cash value, and a death benefit, or the proceeds paid out to beneficiaries. Premiums do not change over the life of the contract. Whole life has the ability to accrue cash value on a tax-deferred basis. This value can be borrowed against or withdrawn to meet financial needs throughout the insured's lifetime.

How long will a whole life policy provide life insurance protection?

Whole life insurance is intended to provide coverage for the entire life of the policyholder. However, most of the policies on which you will receive whole life insurance quotes will have some kind of maximum coverage period, usually age 100 or 121. If and when the policyholder reaches the maximum age, the face amount of the policy will be paid to him/her.

What are dividends?

Dividends are a type of refund of excess premiums the policyholder paid. When the insurer's actual costs fall below the premiums received, the insurer might refund the difference to the policyholder. Dividends are a possibility with whole life insurance, but not a guarantee. You should not count on the receipt of dividends when looking for whole life insurance quotes.

What's the difference between permanent life insurance and whole life insurance?

Whole life insurance is a type of permanent life insurance. When you get whole life insurance, you are getting quotes on a form of permanent life insurance. Permanent life insurance usually refers to any policies except for term life, which provides only a finite amount of protection. Whole life, universal life, and variable life are the most common types of permanent life insurance.

Can I have more than one beneficiary on my whole life policy?

Yes, you can name as many beneficiaries as you like. For policyholders who name more than one beneficiary, the proceeds of the policy will be split equally unless the insured specified otherwise.

What tax benefits can whole life insurance offer?

The tax incentives that come with whole life policies are one of the strongest reasons to sign up for whole life insurance quotes. For one, whole life policies accumulate tax-deferred cash value, so you will not have to pay capital gains or income tax on the money until you withdraw it from the policy. Secondly, the proceeds of all life insurance policies are not subject to income tax, which provides a tax break to your beneficiaries.

If I cancel my whole life policy, what happens to the cash value?

If you cancel your policy or your insurer terminates coverage, the cash value is still yours to keep. The cash value of the policy will be paid out to you upon termination or cancellation.

Why are the premiums on whole life higher than those of term life?

You will find that whole life insurance quotes tend to be a little higher than those of term life policies. This is because whole life has more to offer in terms of cash value accumulation and because the premiums will never increase as long as you live. Term life premiums become higher as you age. In the long run, then, whole life is usually the more economical option.