Life Insurance Alternatives

Whole Life Alternatives

A couple hugging in their basement Whole life is just one option for consumers looking to purchase permanent coverage. Universal and variable also qualify as forms of permanent life insurance. On this page, we'll define the different types of coverage and explain how they differ.

Conventional Options

When you get whole life insurance quotes, you will most likely see traditional offerings. These kinds of policies have the most guarantees. They offer guaranteed annual premiums, death benefits, and cash values. In addition, the dividends from these policies may be applied to the death benefit and/or cash value, refunded to the customer in cash, or used to lower the premiums of the plan. If you are averse to risk as an investor and are not disciplined about saving, traditional whole coverage might be your best option.


Before you look for traditional whole life insurance quotes, you should also consider a variable policy. For savvy investors who are not averse to risk, variable protection might make sense. In contrast to traditional whole, variable offers very few guarantees but also the largest potential for cash value growth. Variable policies usually boast a guaranteed annual premium and a minimum guaranteed death benefit. On the down side, this type of plan has no guaranteed cash value, and policyholders must choose the investments for the policy. The investment options typically include an assortment of mutual funds that might range from aggressive growth to money market funds.


Consumers in the market for pricing estimates might also do well to consider universal coverage. The main appeal of universal life is the flexibility it offers with regard to premiums. This kind of policy is much more flexible than traditional whole offerings because policyholders can change their premiums from year to year and sometimes even skip premiums. Universal offers guaranteed maximum premiums, minimum guaranteed death benefits and cash value. Unlike whole, universal policies do not earn dividends. Instead, the policies accrue interest at the credited interest rate the insurer determines annually.

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Find the best rates Coverage permanency and never-increasing premiums are just a few of the benefits whole life has to offer.