Whole Life Insurance

What is Whole Life Insurance?

Whole life insurance is one of several different types of permanent life insurance policies from which to choose. It is the most basic type of permanent life insurance, and is characterized by a fixed premium, meaning the premium or rate you pay will not fluctuate). As the name suggests, a policy of this type will cover you for your whole life.

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.

Differences from other permanent life insurance

There are a number of different types of permanent life insurance – meaning a policy that is active from the day you purchase it until your death, regardless of when you pass away. Whole life insurance is one such type, and the others carry their own characteristics:

  • Universal Life Insurance: the policyholder has the ability to shift funds between the savings component of the policy and the insurance. This version typically has flexible premiums.
  • Variable Life Insurance: the policyholder maintains the ability to control where savings are invested, and the return on investment (ROI) affects the cash value and the amount of the final death benefit.
  • Universal Variable Life Insurance: combines components of universal and variable life insurance, allowing control over investments and flexibility to shift funds.

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 each affords. Speaking to 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.


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