Whole Life Insurance

Whole life insurance is a permanent life insurance policy that remain in force for the whole life of an insured and requires (in most cases) premiums to be paid every year. Certain whole life insurance policies are “paid up” policies, which means premium payments are no longer required. This is usually determined when the policy is originally purchased, and is usually structured as a single pay, ten pay, or premium payment to age 65.

Like other permanent life insurance policies, a whole life insurance policy has 3 components (1) premium, (2) cash value, and (3) death benefit. The cash value of the policy is typically determined by a dividend rate determined by the life insurance carrier. Whole life insurance premiums tend to be more expensive then other permanent life insurance policies, but offer more stable and superior cash value performance.

Additional Whole Life Insurance Resources