Whole Life insurance is one of the most popular forms of permanent life insurance, and is characterized by a fixed premium, meaning the premium or rate you pay will not fluctuate. Whole Life is considered a no-frills form of permanent life insurance; simple, lower premiums, and as the name suggests, lifelong coverage.
Like many other permanent life insurance policies, whole life insurance policies tend to accrue cash value through a savings component; however, the policyholder does not have control over how and where the money is invested or used.
Whole life insurance has many additional benefits over other Permanent Life insurance products—namely its guarantees. This is also one of the reasons that Whole Insurance is generally more costly than other types of permanent policies: The premium, the cash value, and death benefits are all guaranteed.
|Guaranteed Premiums||Yes||Yes||No – Can increase or decrease to suit your budget||Yes|
|Savings Component||Yes||Yes – Dividend is based on the insurance company’s performance||Yes – Investment portfolio is customizable||No|
|Learn more||Learn more||Learn more|
Deciding what type of permanent life insurance best suits you and the needs of your loved ones can be tough, particularly because of the complexities of each different kind of policy, and the coverage that each affords. Speak with an experienced life insurance broker can help you find the type of policy that is most appropriate for you, whether it be whole life insurance or another option.