Whole life is the most well-known and simplest form of permanent life insurance. While term life insurance lasts for a specified term, whole life insurance lasts for the rest of your life. A payout is guaranteed at the time of death for your policy’s beneficiaries, and some of the money paid into the policy (your premium) is set aside to build “cash value.” You can use this cash value for emergencies or to supplement retirement income by taking a tax-free policy loan against the cash value. Note that outstanding policy loans will decrease the amount of the death benefit paid to your beneficiaries.
Whole life insurance might be right for you if:
The main differentiating factor of whole life insurance is that it lasts for your entire life and can be used as a way to invest in your future—unlike term policies, which expire after your chosen length and have no cash value component. For these reasons, whole life insurance policies typically cost 5-15 times more than term policies for the same amount of coverage.
Whole life insurance may be a good option for those with slightly more complex financial situations, or someone seeking the security of coverage for the remainder of their life. Term life is a good fit for those who want the most affordable coverage or who need to replace their income over a certain period, for example until children are no longer dependent or the mortgage is paid off.
Heads up: You’ll have higher premiums Because you’re guaranteed to be approved no matter what, this life insurance is more expensive than other types of coverage out there. Your age, gender, and the coverage amount you choose are the only factors that affect your price. Your health or past medical history won’t affect your rate, and you won’t need any medical exams, either. In many cases, this is the best option for people who are likely to be denied coverage elsewhere or who are viewed as “uninsurable” by other carriers.
The quote is the same as the final rate. It’s also guaranteed never to go up. As long as premiums are paid when due, the rate you see now will be locked in for as long as you have this insurance
No medical exams, lab tests, or questions about your health. For real.
Many people love this guaranteed issue whole life coverage because you can get approved and covered in a matter of minutes, and there are never any medical exams. This type of life insurance may be great for you, particularly if: