What is Whole Life Insurance?

Whole life insurance is a life insurance policy that offers a guaranteed death benefit and guaranteed cash values for life.  A whole life policy can either be participating whole life or non-participating whole life.  If the policy is participating, the owner may also receive a dividend each year.  While dividends are not guaranteed, many of the top rated life insurance companies have a strong history of paying them to policyholders.  Dividends by definition are considered a return of excess premium and are not taxable under current guidelines.  These dividends can be used in several ways:

  • The dividend can be taken as a cash payment
  • The dividend can be applied to the policy’s cash value – this option allows for the greatest cash value accumulation
  • The dividend can be used to buy paid-up additional insurance – increases the total death benefit
  • The dividend can be used to offset the premiums – lowers the potential cash value growth, but lowers out-of-pocket premium expenses

Who should buy Whole Life Insurance?

Whole life insurance is a suitable plan for both individuals and businesses.  Individuals can protect family assets and future earning potential.  Some of the common reasons to purchase whole life are:

  • Income protection
  • Mortgage protection
  • Retirement funding
  • Pension maximization
  • Estate planning purposes
  • Charitable donations

Whole life can be used to protect business interests of owners and provide additional compensation benefits for key employees.  Some examples are:

How can I get a quote for Whole Life Insurance?

Whole life insurance policies have a number of options to select from that influence the coverage structure so it’s best to speak with a live agent for a free no-obligation consultation to determine the perfect plan for your personal needs.  Please give us a call at 1-888-972-0024 or CLICK HERE to send us an e-mail 24 hours a day.  We look forward to hearing from you!

You can also instantly compare quotes for term life insurance and universal life insurance by CLICKING HERE.