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Understanding Whole Life Insurance

Searching for whole life insurance policies that are appropriate for individual goals requires an understanding of how the insurance works, differences from other insurances and methods of finding the best quotes for personal necessities. By understanding how the insurance works, it is easier to find appropriate policies. Read also: Understanding Your Life Insurance Options.


Basics of Whole Life

Before it is possible to seek out a quote, consumers must understand the differences between whole life policies and other alternatives that provide funds to families in the event of a death.

A whole life policy is designed to last for the entire life of the recipient. It does not expire as long as the policyholder is paying the yearly premium according to the payment schedule. It is possible to make adjustments to the policy, such as adding more coverage, if it becomes necessary to make changes. Read also: 5 Valuable Life Insurance Tips to Consider When Buying Insurance.

Whole life insurance differs from term life or accidental death because it will not expire. Other forms of life insurance that are not designed to last for a lifetime have an expiration date. When the insurance expires, it is necessary to either renew the coverage or find a new provider.

Whole life not only has the benefit of offering coverage for a lifetime, it also has options to help reach family savings goals or take out loans against the insurance coverage for necessary projects the family might need.

The policy guarantees payment at the time of the policy holder’s death, which provides the mental peace that family members will receive the amount of the policy, less any loans taken that were not yet repaid at the time of death. Read also: Savvy Term Life Insurance Shopping.

Benefits of Whole Life

Whole life policies have a few key benefits that make it worth considering. By looking at all of the benefits, it is easier to find a policy that is appropriate to individual needs.

In some cases, whole life policies will not require a health check. This is particularly common for companies that cater to older populations, but it might also apply to younger generations. Some companies require a checkup while other companies will not require verification through medical exams. This differs between companies and policies, but usually those who do not check on health will charge a little more for the added risks.

The policy is designed to last for a lifetime. The fact that it will not expire makes the policy worthwhile when raising young children or when trying to plan around potential problems a family might face in the event of a death. Read also: ABC’s of Life Insurance Dividends.

A wide range of policies is available, which makes it easier to find a contract that works for personal needs. The details of any contract vary, but it is possible to find insurance companies who work around any particular need.

Family savings can increase with a participating policy. Some insurance policies in a whole life company will have participating options. This means that when the company does very well, dividends are shared with the policyholder to increase savings. Dividend payouts vary by company.

The payment options are variable, which makes it easier to find something that is appropriate for personal goals. Some companies allow policyholders to make large payments for a set time period and then are covered for life without making further payments. Other companies work on a yearly payment scheme that makes it possible to pay slowly.


The quotes for a whole life policy are similar to any other type of life insurance. It is possible to obtain information relating to the cost online or over the phone. The paperwork varies by company, but usually will ask some basic questions related to health and coverage requirements.

Qualifications to become approved depend on the company. Some companies will require a full health examination before offering insurance. Other companies do not require health checks. Read also: Why They Call It Universal Life Insurance?

Quotes for a whole life insurance policy are usually higher than other types of insurances because of the fact that the company will always pay out on the policy. Despite that fact, it is easier to obtain coverage, even with existing health conditions like diabetes or high blood pressure.

Whole life is a useful way to obtain peace of mind that loved ones can continue after a death. Since it is a guarantee of payment at the time of death, men and women do not need to worry about expiration dates or renewing the policy.


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