Whole Life Insurance
Whole Life Insurance is the oldest form of Life Insurance available. When Life Insurance was first established it only made sense that it be Whole Life. A Whole Life Insurance policy is designed to last forever with constant and fixed rate to be paid every month. Most Whole Life Insurance Policies pay dividends annually to the insured or the Policyowner if different from the insured. Whole Life has been very popular over the past 150 years. Many people prefer Whole Life Insurance because it is guaranteed Life Insurance. As long as you can pay your monthly premium you are guaranteed the face amount applied for. Also, because The Life Insurance company pays dividends and not interest it less likely to have a bad year of cash value because it is not market participant like other Universal Policies. However, on the flip side it may not have as much cash value potential as a Universal Life Insurance policy.
Whole Life Insurance is not offered with every Life Insurance company. Some companies that do offer Whole Life Products are MetLife, New York Life, Prudential, and Mass Mutual. These are a few that you may have heard of. When looking for a Whole Life Insurance policy it is important to look at A rated companies only. The rating of a Life Insurance company is a reflection of its Financial status and when looking for a company to pay dividends you want a company that is in great financial status.
Since the newer Universal Life Insurance products have made their way to the Life Insurance market place, Whole Life Insurance has seen a decline in new policies. Mostly because they are not as flexible as Universal Life policies, hence the term “Universal”. They also do not have cash accumulation potential. Nevertheless Whole Life Insurance is still very strong and will always remain the strongest and most reliable form of Life Insurance.
We encourage you to call and speak to one of our experienced Life Insurance agents today. Our services are free to you and we can put together a personalized Whole Life Insurance quote designed specifically to meet your needs. Otherwise feel free to obtain your own quote by filling out the Whole Life Insurance quote form above.
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Questions and Answers
- Q1: How is Whole Life Insurance different from Universal Life Insurance?
A: Both are considered permanent life insurance which means they last until age 125, however Whole Life Insurance is not flexible at all. It is one set rate for a set face amount. Universal Life Insurance is flexible in premium and typically earns cash value.
- Q2: Is Whole Life Insurance expensive?
A: In comparison to other forms of Life Insurance, Whole Life Insurance on the more expensive side. However, you get what you pay for.