Whole Life Insurance Definition

What is Whole Life Insurance? You may be asking yourself, how does one define Whole Life Insurance? Everyone seems to know a little about Term Life Insurance but most people know little or nothing about whole life insurance. One reason is that people know little about whole life is that they probably have never looked into it. People usually tend to buy term life insurance more because of the lower cost and that it just seems to be the right thing to do. Let us look at whole life. How do we define Whole Life Insurance?

Whole life insurance is simply life insurance coverage that is for the rest of your life, thus the name whole life insurance. Whole life has a level death benefit as well as a level premiums. There is much more to this policy though. It has certain advantages that most other policies cannot even think about offering you.

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Whole life insurance has cash values that build up and also accumulates dividends. You have the option of using your dividends in different ways. Dividends, however, are not guaranteed.

The whole life policy usually works best used in combination with another type of life insurance policy, usually a level or annually renewable term life policy. What you do is that you use your whole life insurance as your base policy and add a level term life insurance policy to it to increase the coverage at a lower cost. Your intention here would be to buy a large amount of life insurance, a whole life and term combination.

Life insurance that provides coverage for an individual's whole life, rather than a specified term. A savings component, called cash value or loan value, builds over time and can be used for wealth accumulation. Whole life is the most basic form of cash value life insurance. The insurance company essentially makes all of the decisions regarding the policy. Regular premiums both pay insurance costs and cause equity to accrue in your "savings account". A fixed death benefit is paid to the beneficiary along with the balance of the savings account. Premiums are fixed throughout the life of the whole life insurance policy even though the breakdown between insurance and savings swings toward the insurance over time.

Please call us today for more information on Whole Life Insurance at  866-392-INFO (4636)