Whole Life Insurance

What Is Whole Life Insurance

Whole life is a form of permanent life insurance for people who want a steady policy that may build funds over the years. It runs on a death benefit system: you sign a contract with the insurance company, agree to a set premium, and a payout is delivered when you, the policyholder, pass away. Here's a breakdown of these terms so you can better understand how whole life insurance works:

• Permanent Life Insurance: This means that instead of renewing or hunting for a different policy after some time, you keep your coverage until you pass away, as long as you stay current on your premiums.
• Premiums: These are the monthly payments you must make to maintain your coverage. The exact amount hinges on your age, health, and sex.
• Death Benefit: This is the whole point and aim of the whole life policy—it's the agreed-upon sum of money that gets paid out.
• Beneficiary: This is the person or people you designate to receive the death benefit.

The Benefits of Whole Life Insurance

Whole life insurance provides plenty of reassuring security along with steady income potential. You can treat a whole life policy as both a savings plan and insurance—not only can you draw on those savings when needed, but there's also room for them to grow.

When invested, these savings can build without jeopardizing your death benefit. That added cash value is yours to use during your lifetime however you like.

Whole vs. Term & Universal Life

Whole life is one of three primary insurance policies, the other two being term and universal life. Term life is bought only for a set stretch of time, such as 10 to 30 years, unlike whole life, which lasts your entire life.

Universal life is another permanent insurance choice, but with more options and openings for investment. You can pay more or less on your monthly premium, and even pay it off completely if you're able and inclined.

Explore Your Options Without Fear—Call Quottes

Quottes will help you review all of your life insurance options and answer any questions you have. All you need to do is give us a call today!