Skip to Content

Whole Life Insurance

The main benefit and purpose of purchasing a Whole Life policy is to provide yourself with insurance coverage for final expenses and other goals during your entire lifetime.

Whole Life policies are very attractive because they provide guaranteed level premiums, payment terms and cash values. There is a saying in the life insurance industry; "You own whole life insurance and rent the term insurance."

A whole life policy builds up a cash surrender value over its lifetime which is paid out to the policyowner upon the cancellation of the policy. Cash values can be borrowed during the life of the policy as a loan. The cash surrender value can also be used to pay premiums, to purchase a paid-up policy with a reduced face amount, or to continue the policy for an established period as term insurance.

An "ordinary" whole life policy offers level premiums over the policy owner's lifetime. A "limited payment" whole life policy offers level premium payments over a specified number of years. The face value and the premiums are generally fixed, even though the cost of insurance increases as you grow older. Because the premiums exceed the actual cost of insurance in the early years, a policy reserve or savings element is created. Based on a "pay now, save later" approach, this policy reserve is used to subsidize the premiums in later years. The policy reserve also includes interest that has accumulated on the amounts left on deposit, and "dividends" (if it is a participating policy) that may comprise a share of investment, mortality and operating profits. A non-participating policy does not pay dividends, however the premium payments are less. Also, dividends are not guaranteed.

In the event of death of the insured the beneficiaries receive the face amount of the policy, but not any cash values that may be in the reserve.

The two most popular whole life policies that I recommend and sell are the 15 and 20 Pay Whole Life Policies. The premiums are competitive for people 50 years of age and under. There is also a great deal of satisfaction owning a paid-up life insurance policy prior to retirement. I have one myself and it is now paid-up. I have lost count of the number of seniors I have spoken with over the past 30 years who have expressed their disappointment for not having a paid-up life insurance policy upon or prior to their retirement.

so that I can assist you to aquire your own affordable insurance policy. Free quotations can be provided by phone, fax or email.