What Exactly is Whole Life Insurance?


What is Whole Life Insurance? Well Traditional Whole Life Insurance is a dividend based life insurance policy that is issued by a mutual life insurance company. There are several carriers that issue whole life plans and they are mutual holding companies (carriers that used to be a true mutual company) that still issue dividends.  There are also some that are now stock companies and they have a straight guaranteed plan. With these Whole Life Insurance plans you have a guaranteed death benefit and a guaranteed cash value. These benefits can increase over time assuming dividends continued to be paid.

Is Whole Life Insurance

Is Whole Life Insurance

How much is Whole Life Insurance?

Whole Life Insurance does cost more than either term or universal life. The underlying guarantees associated with the cash values and lifetime death benefits are a reason for this.


Is Whole Life Insurance a good investment?

I never consider Whole Life or any life insurance plan an investment. There has to be a need for insurance first and foremost. Then we can consider your family’s specific needs and work on finding your the perfect policy. Whole Life protects you and your family for life with a guaranteed death benefit as long as you continue to fund the policy. While simultaneously building an accumulation of cash which can be withdrawn at some point in the future.


Is Whole Life Insurance a product that you have to pay on forever?

Some Whole Life plans have projections, based on dividend performance, that will allow you to stop payments at a predesignated number of years, the disadvantage to that is if the dividends don’t hold up to projections then the ability to stop payments will not happen and will get extended past the initial time that was projected. There are several insurance carriers that do have true guaranteed paid up plans that either have 10 years, 20 years or age 65 payment options and some will even allow you to design your own number of years that you want to pay.


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