Whole Life Explained

Whole Life Coverage

A baby and her mother hugging Whole life policies provide lasting protection with the benefit of cash value accumulation. Learn more about the most popular features of these plans here.

About Whole Life

Before you begin comparing rates, it may help to learn a bit more about how such policies work. Whole life insurance provides permanent protection and premiums that never increase. Unlike term policies, whole plans accumulate interest earned over time, which makes their death benefits more valuable than those of other policies. Consumers can use whole coverage as a vehicle to achieve their long-range financial goals. Usually, these plans come with a guaranteed cash value that the insured can tap into later to fulfill temporary financial needs or handle emergencies.

Whole Life Highlights

These plans have several features that make them different from basic offerings. Consider the following features before you shop for quotes:

  • Premiums are unchanging and payable for the policyholder's life. Because whole premiums are constant, the younger you are when you take out a policy, the lower your annual premiums will be. In other words, the whole life insurance quotes that you receive will reflect the premiums you will pay for as long as you live. Some insurers also offer permanent options with abbreviated payment periods (e.g., 15 years) or a one-time payment.
  • Guaranteed cash values. In contrast with term policies that do not earn anything, a portion of the money you put into your plan grows as guaranteed cash value. If you decide to cancel the agreement or if your policy is terminated, the accumulated growth still belongs to you. And, as long as the policy is active, you can borrow against this sum with a policy loan. The loan will be subject to your insurer's current interest rate. Borrowing from your plan will lower the cash value and the death benefit. The amount of your policy's guaranteed cash value will depend on the type of plan you purchase, how long you've had the plan, and its benefit amount. As you shop for a plan, remember that the growth of these plans is tax deferred, meaning you will not pay income tax on the money until you withdraw it.
  • Dividends. Whole life policies have the ability to earn dividends. Consumers receive dividends when the true costs of the plan end up being less than the insurer expected when determining the premiums. When this occurs, your insurer might return part of your premiums to you as a dividend. Remember that dividends are not a sure thing because insurers cannot predict their actual costs in advance.
Select Insurance Type:
Enter Zip Code:
Find the best rates Coverage permanency and never-increasing premiums are just a few of the benefits whole life has to offer.