Top 20 Best Whole Life Insurance Companies 2018 Review

  • Full Review of the Best Cash Value Whole Life Insurance Companies

Top 20 Best Whole Life Insurance Companies 2018 Review

Are you thinking about purchasing whole life insurance for yourself or another family member?

Before you take this important step in protecting yourself and your family against financial difficulties, let’s make sure you have a solid understanding of permanent life insurance.

It’s not uncommon to feel a little overwhelmed when it comes to understanding life insurance especially when it’s whole life insurance.

But don’t worry! We have you covered.

Before we dive into our list of the best whole life insurance companies, let’s take some time to review exactly what whole life insurance is and how it works.

Do you already have a good understanding about whole life insurance? If so, click the link to jump to our list of the top best whole life insurance companies.

 

What Is Whole Life Insurance?

Visit the National Association of Insurance Commissioners and in their glossary of terms, whole life insurance is described as “may be kept in force for a person’s entire life” and “pays a benefit upon the person’s death, whenever that may be”.

While those statements are very true, there are other components that make up what a whole life insurance policy really is.

4 Main Components that make up a Whole Life Insurance Policy:

  •   Permanent Protection
  •   Guaranteed Death Benefit
  •   Guaranteed Fixed Premium
  •   Cash Accumulation

Permanent Protection & Guaranteed Death Benefit

When you break down the four main components of a whole life insurance policy, the first and second go hand in hand.

Whole life insurance, first and foremost is designed to be permanent life insurance with a guaranteed death benefit.

This means from day one of the life insurance coverage, you can rest assure that as long as you do not let your policy lapse, the coverage will always be there for you. Nothing can change that.

Guaranteed Fixed Premium

The third component of whole life insurance is the guaranteed fixed premium.

Once your life insurance policy has been approved and activated, your premium payments will never change, even as you grow older.

This is different from some of the other type of life insurance, such as term life insurance. For example, term insurance only has a fixed rate for the duration of however long your contract is.

After the contract expires your rates will increase. One of the reasons for the increase will be due to older age among other factors.

Cash Value Growth

One of the most appealing factors and last components of a whole life insurance policy is its ability to earn cash values on a tax-deferred basis.

Every whole life policy will have a predetermined guaranteed growth rate in cash values. In addition to the guaranteed cash, some whole life insurance policies can earn dividends resulting in an even larger increase in the cash value of the life insurance policy.

Dividends are profits made by the insurance company that are shared with the policy owners. These profits can be taken in the form of cash or put into the life insurance policy for higher cash growth.

NOTE: Dividends are not guaranteed and in order for them to be received the whole life insurance policy must be participating, which is discussed a little later.

The tax-deferred growth of the cash values can also come in handy in later policy years.

The cash value build is often used by many whole life insurance owners to supplement retirement income or to borrow from cash values just like a loan from the bank, but instead of borrowing from your bank, you would borrow from the cash build up of your life insurance policy.

One great way to define whole life insurance is that it acts just like a forced savings account, but with a very important bonus feature, known as the death benefit.

 

Is Whole Life Insurance the Same as Universal Life Insurance?

Whole life insurance is often confused with universal life insurance and it’s easily understandable as they both have similarities.

Both whole life and universal life can be classified under the category of permanent life insurance.

They both have the ability to earn cash value and can remain in force for the insured’s lifetime.

The main difference between the two will be overall cost as well as the amount of money each can potentially earn.

In short, the premium payments for a whole life insurance policy are split into two portions. One portion goes towards the overall cost for the life insurance coverage and the second portion goes towards the cash value account.

Universal life insurance does not accumulate nearly the amount a whole life insurance policy and most, if not the entire premium goes towards the actual cost of the life insurance.

“If you’re looking for low cost permanent life insurance without cash growth, then guaranteed universal life insurance would be coverage to consider.”

Universal life policies also offer flexible premiums. This means that you can adjust how much you pay each year by using some of the policy’s cash value to cover the cost of insurance. Whole life insurance requires the full payment when payment is due.

 

Advantages of Whole Life Insurance

The greatest benefit of whole life insurance is protection against negative financial consequences when the insured person dies.

In most cases, the death benefit (the amount paid out upon death) is tax-free for the beneficiary. This is common for all kinds of life insurance.

As mentioned in the previous section, whole life accumulates cash value while the policy is in force. This can make it a good investment vehicle for the policyholder.

There are no tax implications related to the cash value for as long as the cash value remains in the policy. If the policyholder withdraws any of the cash value, there are potential income tax implications.

Note: A tax implication will not occur if the cash is taken out as a loan or if the cash withdrawn is not greater than the total amount of money invested into the life insurance coverage.

Whole life policies also come with a surrender value. That’s the amount the policyholder receives if they choose to cancel the policy.

In contrast, if a term policy is canceled, there is no possibility of policyholder receiving any funds, as term insurance does not earn cash values.

The conditions for surrendering a policy are specified in the policy contract. The surrender value is not automatically the same as the cash value amount.

Another advantage of many whole life policies is the option of taking a loan against the cash value. This can be beneficial for managing short-term financial hardship or unexpected major expenses.

Whole life insurance policies are flexible in other ways too. In many cases, the amount of the death benefit can be decreased and even increased at times when utilizing dividends.

 

Disadvantages of Whole Life Insurance

The most notable disadvantage of whole life insurance is its complexity compared to other type of life insurance coverage.

Most life insurance companies offer a few kinds of whole life products. Each is designed with a different focus. For example, one product might be better for rapid cash value accumulation. Another might be better for generating supplemental income during retirement.

There are a few ways cash value accumulates in whole life products. Some involve market indexes, requiring greater investment knowledge from policyholders.

Because of whole life’s flexibility, there are several kinds of fees and administrative charges.

The amounts and conditions under which they apply are spelled out in the terms and conditions of the policy. It’s common for people to want the guidance of a professional insurance broker to better understand the implications of the all the terms and conditions.

The way the cash value accumulates varies by provider. Most offer minimum rates of return, but that rate differs depending on which whole life product you choose.

Another disadvantage to whole life insurance is its expensive cost. Whole life insurance is often considered as being one of the most expensive types of life insurance options.

However, this is partly due to a large portion of the premium payments going towards your cash value build up. Remember to think of whole life insurance as a savings account that you’re forced to pay into.

Some financial experts like Dave Ramsey, Suze Orman and even Clark Howard, recommend people stay away from whole life insurance and only purchase term life insurance.

This is mainly due to high cost of whole life insurance and lower return on investment compared to other available investment options.

Their theory on whole life insurance is that buy term and invest the difference, you have a better chance of a higher return on your investment.  

However, this theory is highly debatable among all financial professionals and should not deter you away from considering whole life insurance coverage.

     

Types of Whole Life Insurance

Whole life insurance in itself can be broken down into two available types called participating and non-participating.

If you’re considering a whole life insurance policy it is very important to know the difference between the two as the difference lies within the cash values.

Participating Whole Life Insurance (Dividends)

  • Participating whole life insurance participates in receiving dividends
  • Also receives guaranteed scheduled cash values plus any dividends

Non-Participating Whole Life Insurance (Non-Dividends)

  • Non participating whole life insurance does not receive any dividends
  • Will only receive the guaranteed scheduled cash values
  • Sometimes referred to as Final Expense, Guaranteed Approval or Senior Life Insurance

 

INSTANT GUARANTEED CASH VALUE WHOLE LIFE INSURANCE QUOTES

(Quotes Instant Non-Participating Whole Life Insurance Rates)

Top 10 Best Participating (Cash Value) Whole Life Insurance Companies

Choosing a life insurance company can be a difficult process, especially when there are so many available options. Because of this, we are making your search a little bit easier by putting together a detailed list of who we would consider to be the best whole life insurance companies.

This top 10 list of whole life insurance companies have the ability to pay out dividends, have a long history within the life insurance industry as well as have high A.M. Best ratings of an (A) or better.

Not every life insurance company will make for a perfect fit for each individual, so please review this list and contact us to discuss further options that may make sense for your own unique situation.  

Click on any of the following links to quickly jump to company product review.

  1. Ameritas
  2. ANICO
  3. Guardian
  4. Foresters
  5. MassMutual
  6. Minnesota Life
  7. New York Life
  8. Northwestern Mutual
  9. Penn Mutual
  10. SBLI

 

Best Whole Life Insurance Companies

Ameritas

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Ameritas Growth Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: 10 Pay & Lifetime Pay

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND INTEREST RATE: N/A

DIVIDEND OPTIONS: Purchase Paid Up, Cash, Reduce Premium, Accumulate with Interest, Purchase Participating One-Year Term Insurance, Reduce Outstanding Loan, Purchase One-Year Term Insurance Equal to Cash Value

INCLUDED POLICY RIDERS

Accelerated Benefit for Terminal Illness – This rider replaces the Care4Life rider in states where it’s not available. The terminal illness rider can pay out up to 50% of the death benefit due to a qualifying terminal illness.

Care4Life – The Care4Life is a free policy rider that can accelerate an early payout of the death benefit is the insured is diagnosed with either a critical, chronic or terminal illness.

OPTIONAL POLICY RIDERS

Accidental Death Benefit – This rider pays out an additional death benefit if death has occurred from a result of an accident.

Children’s Insurance – This rider provides $25,000 of term life insurance of each child of the insured up to age 25. The insurance can be converted to permanent life insurance without evidence of insurability.

Flexible Paid Up Rider – This rider provides an additional death benefit protection and can quickly build up cash values by purchasing paid-up insurance. After the first policy year the insured can pay more or less than the schedule premium as well as even skip premiums if necessary.

Guaranteed Insurability – This rider allows for additional life insurance to be purchased without evidence of insurability at scheduled policy dates.  

Level Term Rider – This rider allows for the insurance policy owner to purchase additional life insurance in the form of a 10, 15, 20 or 30 year term life insurance policy. The Level Term Rider is also convertible to permanent coverage without evidence of insurability.

Waiver of Premium – This rider waives the premium payment due to a qualifying disability.

 

ANICO Best Whole Life Insurance Companies

ANICO

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: ANICO Signature Whole Life

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $10,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-80)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: No

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: N/A

DIVIDEND OPTIONS: Cash, Premium Reduction, Dividend Accumulation, Paid-Up Additions

INCLUDED POLICY RIDERS

Accelerated Benefit Riders – The Accelerated Benefit Riders come at no additional cost and can provide a discounted full or partial payout of the policy death benefit for a qualifying chronic, critical or terminal illness.

OPTIONAL POLICY RIDERS

Children’s Level Term Rider – Provides level term insurance on each child to the insurance up to age 25.

Disability Premium Waiver – Will waive the premium if you become disabled as long the disability is continuous for at least six months.

Guaranteed Insurance Option Rider – Allows for additional insurance to be purchased at specified ages or life events regardless of health or occupation.

Paid-Up Additions Rider – This rider allows for the purchase of paid-up participating whole life insurance as either a single purchase payment or scheduled purchase payments for a specified duration of time.

ANICO Signature Term Rider – This rider allows for an amount of additional term insurance to be purchased on the insured, family member or an associate so long as there is insurable interest. Level term lengths include 10, 15, 20, 30 year as well as annual renewable. The minimum death benefit is $25,000 and the coverage can be converted into permanent life insurance without evidence of insurability.

 


Best Life Insurance Companies Guardian

Guardian

A.M. BEST’S RATING: (A++) Superior Rating

POLICY NAME: Guardian Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-80)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: 10 Pay, Level Pay to age 95, 99 or 120

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: 5.85%

DIVIDEND OPTIONS: Purchase Paid-up Additions, Reduce Premium, Premium Offset, Dividend Accumulation, Level Q Term & Reduce Loan

INCLUDED POLICY RIDERS

Enhanced Accelerated Benefit – The Enhanced Accelerated Benefit Rider allows for a acceleration of a portion of the policy death benefit due to a qualifying critical or terminal illness. A qualifying occurrence would require the insured to be unable to perform two of the six Activities of Daily Living or become diagnosed with 12 months or less to live.

Index Participation Feature – This rider is a Guardian exclusive rider that allows for allocation of all or a portion of the cash value of paid-up additions to receive a dividend adjustment based on the movement of the S&P 500 Price Return Index, subject to a cap and floor.

OPTIONAL POLICY RIDERS

10-Year Renewable Term – This rider allows for the purchase of a 10 year term policy to go with the whole life insurance coverage. The term insurance is renewable and can be convertible to permanent insurance.

Accelerated Death Benefit for Long Term Care Services – This rider allows for a portion of the death benefit to be accelerated to help pay for long term care expenses. There is a 90 calendar day elimination period with a maximum cumulative benefit of up to 90% of the death benefit and a minimum of $25,000.

Accidental Death Benefit – This rider provides an additional death benefit in the event that death has occurred by accidental bodily injury.

DuoGuard – This rider can guarantee a beneficiary the right to purchase a new life insurance policy in the event that the insured dies.

Guaranteed Insurability Option – This rider guarantees that the insured can purchase up to an additional $250,000 of death benefit coverage at 8 specific policy anniversary dates. The total amount of new coverage can equal up to $2,250,000 without any evidence of insurability.

Paid-Up Additions Rider – This rider allows for flexibility in paying premiums to allow for higher cash value gains.

Simplified Insurability Option – Similar to the guaranteed insurability option, this rider allows for extra death benefit coverage to be purchased on a simplified underwriting guidelines.

Waiver of Premium – This rider helps pay premium payments to keep the life insurance coverage inforce in the event of a total disability.

For additional company and product information, please visit our Guardian Life Insurance page.

 


Best Life Insurance Companies Foresters Financial

Foresters

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Advantage Plus Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $10,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+ or up to $400,000 without an exam

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: Single Pay, 20 Pay & Level Pay to age 100

ABILITY TO PAY DIVIDENDS: Yes

2016 DIVIDEND INTEREST RATE: 6.83%

DIVIDEND OPTIONS: Paid-up Additions (PUA), On Deposit with Interest, To Reduce Premiums, Paid in Cash

INCLUDED POLICY RIDERS

Accelerated Death Benefit Rider – This free rider provides the ability to accelerate a portion of the death benefit if diagnosed with an eligible chronic, critical or terminal illness.

Common Carrier Accidental Death Rider – This rider provides an extra death benefit of up to two times the policy death benefit amount if the insured has passed away as a result of accidental bodily injury that occurred on a common carrier as a fare-paying passenger.

Family Health Benefit Rider – This free rider provides benefits to immediate family members for qualifying health situations that have been a result of an earthquake, hurricane, tornado, tsunami, typhoon, struck by lighting or volcanic eruption.

Complimentary Member Benefits – When you purchase life insurance with Forester, you gain access to several complimentary member benefits, such as competitive scholarships and community grants.

OPTIONAL POLICY RIDERS

Accidental Death Rider – Provides additional life insurance coverage in the event death has occurred from an accident.

Children’s Term Rider – This rider provides level term life insurance for each child listed on the application up to age 25. After age 21, coverage can be converted to permanent life insurance without evidence of insurability up to 5x the death benefit.

Disability Income Rider (Accident Only) – This rider provides a monthly benefit for up to two years if the insured suffers total disability from one’s own occupation. The monthly benefit amount can be up to $3,000.

Guaranteed Insurability Rider – This rider provides an opportunity to purchase additional life insurance coverage without proof of insurability on specified ages (25, 28, 31, 34, 37 & 40).

Paid-Up Additions Rider – This rider provides an opportunity to purchase paid-up additional insurance.

Waiver of Premium Rider – Waives premium payments from one’s own occupation for 24 months. Premium payment will continue to be waived if disability prevents work in any other occupation up to age 60.

10 & 20 Year Term Rider – Provides term life insurance in either a 10 or 20 year option. The term insurance can also be converted into permanent insurance without proof of insurability as long as it’s done before age 65.

 


Best Whole Life Insurance Companies MassMutual

MassMutual

A.M. BEST’S RATING: (A++) Superior Rating

POLICY NAME: Whole Life Legacy

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: 10 Pay, 20 Pay, Level Pay to 65 & Level Pay to age 100

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: 6.40%

DIVIDEND OPTIONS: Cash, Reduce Premiums, Paid-Up Additions, Accumulation, LISR/Flex, One-Year Term, Reduce Loan & Reduce Loan Interest

INCLUDED POLICY RIDERS

Accelerated Death Benefit Rider – This rider can advance a portion of the death benefit due to a qualifying terminal illness in which the insured has been given 12 months or less to live.

Transfer of Insured Rider – This rider allows the policy owner to substitute a new insured for the insured under the policy. There must be insurable interest between the new insured and the policy owner. The new insured cannot be older than age 75 and evidence of insurability will be required.

Yearly Term Purchase Rider – This rider works when the one-year term dividend option is selected by using the dividends to purchase one year term insurance.

OPTIONAL POLICY RIDERS

Additional Life Insurance Rider – This rider allows for purchase of additional participating paid-up whole life insurance also known as paid-up additions.

Guaranteed Insurability Rider – This rider guarantees the policyowner the option to purchase a specified amount of extra life insurance coverage without any evidence of insurability.

Life Insurance Supplement Rider – This rider provides the opportunity to purchase additional life insurance coverage that is comprised of one-year term insurance and paid-up additions. The additional coverage will be for the same premium amount, or the same coverage for a smaller premium amount, then that of a comparable whole life policy. The life insurance supplement rider provides the ability to customize coverage and pay a premium that fits their budget.

LTC Access Rider –The rider allows for acceleration of a portion of the death benefit to help pay for long term care services. The LTC Access Rider can be used to supplement a traditional long term care policy.

Renewable Term Rider – This rider provides extra life insurance coverage in the form of annual renewable level term life insurance.

Waiver of Premium – Premiums payments for the base policy and all riders will be waived if the insured becomes totally disabled.

 


Best Whole Life Insurance Companies Minnesota Life

Minnesota Life (Securian Financial Group, Inc.)

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: (2) Secure Protector & Secure Accumulator Whole Life

  • Secure Protector Whole Life – Focuses on guaranteed protection with lower premiums.
  • Secure Accumulator – Focuses on guaranteed cash accumulation growth.

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $50,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-90)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: Single Pay or Pay to Age 121

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: N/A

DIVIDEND OPTIONS: Accumulation at Interest, Cash, Loan Repayment, Loan Repayment with Balance Paid to Paid-Up Additions, Paid-up Additions, Reduce Premium with Balance to Cash & Reduce Premium with Balance to Paid-Up Additions

INCLUDED POLICY RIDERS

Accelerated Benefit Agreement – Allows access to a portion of the death benefit upon diagnosis of a terminal illness.

OPTIONAL POLICY RIDERS

Children’s Term Agreement – This rider covers children of the insured with life insurance coverage up to age 25. After 25, the children will have the option to convert the coverage to their own permanent life insurance policy.

Guaranteed Insurability Option – Provides future options to purchase additional death benefit protection without underwriting on specified dates between the ages of 22 and 40.

Premium Deposit Account Agreement – This rider allows for the opportunity to pre-pay future policy payments paying off the insurance in a shorter amount of time. The premiums are deposited into a fixed-interest crediting account, and interest is applied at the time of each premium payment. The ideal is to pay the insurance coverage off in 1-3 payments without making the life insurance a Modified Endowment Contract (MEC).

Single Premium Paid-Up Insurance Agreement – Annually allows for the extra purchase of additional amounts of paid-up coverage.

Waiver of Premium Agreement – Waives the policy premium if the insured becomes totally and permanently disabled before the age of 65.

Optional Secure Protector Only Riders

Accidental Death Benefit Agreement – This rider pays out an additional death benefit if death is a result of an accident.

Additional Insurance Agreement – This rider provides additional life insurance coverage by using a combination of both paid-up additional insurance and one-year term insurance.

Optional Secure Accumulation Only Riders

Flexible Term Agreement – Offers 10 or 20 year level term insurance up to 80% of face amount.

 


Best Whole Life Insurance Companies New York Life

New York Life

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: Custom Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-70)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: Customizable or Pay to age 100

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: 6.20

DIVIDEND OPTIONS: Paid-Up Additions, Dividend Accumulation, Premium Payment & Cash

INCLUDED POLICY RIDERS

Insurance Exchange – This rider provides the option to transfer the life insurance policy to a successor insured, subject to insurability.

Living Benefits – This rider provides a portion of the death benefit if diagnosed with a terminal illness and found to have a life expectancy of 12 months or less.

Spouse’s Paid-Up Insurance Purchase Option – This rider provides the spouse the right to purchase a new paid up life insurance policy without evidence of insurability if the insurance has passed away. In order to qualify, the spouse must have been the named beneficiary of the insured’s policy at time of death.

OPTIONAL POLICY RIDERS

Accidental Death Benefit – Provides an additional death benefit equal to the base death benefit should the insured die as a result of an accident.

Child’s Protection Benefit – This rider will protect the life insurance coverage purchased on a child in the event of death or disability of the premium payer. Premiums will be waived until the child’s 25th birthday.

Chronic Care Rider – This rider allows for tax-free access to the death benefit due to a permanent chronic illness. Monthly benefits can be selected for payments over 25, 50 or 100 months.

Disability Waiver of Premium – This rider waives premium payments due to total disability.

Dividend Option Term – This rider combines a decreasing term rider with the paid-up additions dividend option. Each year the amount of term insurance will decrease automatically by the same amount as the increase in permanent insurance provided by the paid-up additions. This helps make more insurance coverage available at an affordable cost. Any remaining term insurance can be converted into whole life insurance.  

Extension of Premium Paying Period – This rider allows for the premium-paying period to be increased to help make premium payments more affordable. This change can only be elected once, and must be made in the first five policy years.

Option to Purchase Paid-Up Additions – This rider allows for premiums to be used to purchase additional life insurance coverage that can be eligible for dividends. This can help increase both death benefit as well as cash value growth.

Payer Protection Benefit – This rider will waive premium payments is the payor of the life insurance policy becomes totally disabled. The premium payor needs to be someone other than the insured in order for this policy rider to work.

Policy Purchase Option – This rider guarantees the option for additional life insurance coverage to be purchased at certain occurrences, without having to provide evidence of insurability.

For additional company and product information, please visit our New York Life Insurance page. 

 


Best Life Insurance Companies Northwestern Mutual

Northwestern Mutual

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: Single Pay, 10, 15, 20, 25 & 30 Year Pay & Pay to age 65 or 90

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: 4.9

DIVIDEND OPTIONS: Purchase Paid-Up Additions, Reduce Premium Payments, Accumulate at Interest & Cash

AVAILABLE POLICY RIDERS

Accelerated Care Benefit (ACB) – This rider provides an accelerated benefit to reimburse for qualifying long-term care expenses.

Additional Purchase Benefit (APB) – This rider allows for additional life insurance coverage to be purchased without any evidence of insurability at specified future policy dates.

Waiver of Premium Benefit – This rider waives premium payments if the insured has become totally disabled.

 


Best Whole Life Insurance Companies PennMutual

Penn Mutual

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Flex Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $50,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: Customizable from 5 Pay to Pay to age 100

ABILITY TO PAY DIVIDENDS: Yes

2018 DIVIDEND RATE: 6.34

DIVIDEND OPTIONS: Paid-Up Additions, Premium Reduction, Cash, Dividend Accumulations, Loan Repayment & Term Insurance Purchase

INCLUDED POLICY RIDERS

Accelerated Death Benefit – Allows access to a portion of the death benefit if the insured is diagnosed with a terminal illness.

Chronic Illness Accelerated Benefit Rider – This rider allows access to a portion of the death benefit if diagnosed with a qualifying chronic illness.

Overloan Protection Benefit Rider – This rider keeps the life insurance policy in force despite any outstanding policy loans.

OPTIONAL POLICY RIDERS

Accelerated Permanent Paid-Up Additions Rider – This rider will periodically pay out extra premiums to help replace the term insurance of the Flexible Protection Rider faster.

Accidental Death Benefit Rider – Provides an additional death benefit if the insured death was the result of an accident.

Children’s Term Insurance Rider – Provides temporary life insurance coverage on all eligible children of the insured which can be convertible to permanent coverage when they reach age 23.

Disability Waiver of Premium Rider – This rider allows for premium payments to be waived for up to two years, if the insured has become disabled and is unable to work in their primary occupation. If the insured’s disability does not allow for work in any other occupation after two years, premium payments will continue to be waived.

Enhanced Disability Waiver of Premium Rider – This rider will waive all premium payments for up to 6 years if the insured has become disabled and is unable to work in their primary occupation. If the insured disability prevents work in any other occupation after 6 years, premium payments will continue to be waived.

Enhanced Permanent Paid-Up Additions Rider – This rider allows for the death benefit to increase and build cash value more rapidly by purchasing additional paid-up whole life insurance.

Flexible Protection Rider – This rider provides the ability to build up to a larger death benefit at a lower cost by blending both term insurance with whole life insurance. With this rider, premium payments go towards the purchase of term insurance and additional permanent insurance.

Guaranteed Purchase Option Rider – This rider allows for additional life insurance protection to be purchased in the form of a new permanent policy without evidence of insurability.

 


Best Whole Life Insurance Companies SBLI

SBLI

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: Custom Whole Life Insurance

TYPE OF POLICY: Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS: Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 0-80)

GUARANTEED CASH VALUES: Yes

LIMITED PAY OPTIONS: 10 Pay, 15 Pay, 20 Pay, Pay to age 65, Continuous Pay and Single Pay

ABILITY TO PAY DIVIDENDS: Yes

2017 DIVIDEND RATE: 4.60

DIVIDEND OPTIONS: Purchased Paid-Up Additional Insurance, Reduced Scheduled Premium Payment, Cash & Accumulate at Interest

INCLUDED POLICY RIDERS

Accelerated Death Benefit – This rider will pay up to 50% of the death benefit up to $250,000, due to a qualifying terminal illness.

OPTIONAL POLICY RIDERS

Accidental Death Benefit Rider – Pays out and extra death benefit in addition to the base death benefit, if death is due to an accident.

Children’s Level Term Insurance Rider – Provides temporary low cost life insurance coverage on all natural children, stepchildren or legally adopted children of the insured.

Guaranteed Level Premium Term – Provides additional life insurance coverage in the form of either a 10, 15, 20, 25 or 30 year term life insurance policy. The term can also be converted to whole life insurance.

Guaranteed Purchase Option – Allows for additional permanent life insurance to be purchased at specific ages or life events with no medical exam or health questions.

Single-Pay Paid-Up Additions – Allows for the insured to make additional cash deposits at the time the life insurance is issued to enhance both the death benefit and cash value.

Waiver of Premium – Will waive life insurance premiums, if the insured becomes totally disabled.

 

Top 10 Best Non-Participating Whole Life Insurance Companies

This list of the best whole life insurance companies would not be complete without mentioning who the best companies are for non-participating whole life insurance.

Non-participating whole life insurance provides many of the same great benefits of participating whole life insurance minus the dividends and some of the policy riders.

Non-participating whole life insurance is a simpler form of whole insurance and in many cases a better option for seniors looking for smaller coverage amounts with a guaranteed premium, death benefit and cash values.

Just like we mentioned before, take a look at this top 10 list for a good idea on some great available whole life insurance coverage, but be sure to contact us to make sure it’s a good fit for your individual coverage needs.

Use the quoter below for some sample rates for non-participating whole life insurance quotes.

Click on any of the following links to quickly jump to company product review.

  1. AIG
  2. Assurity
  3. AXA
  4. Cincinnati Life
  5. Foresters
  6. Gerber
  7. Nationwide
  8. Mutual of Omaha
  9. Sagicor
  10. Transamerica

 


Best Whole Life Insurance Companies AIG  

AIG

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Guaranteed Issue Whole Life Insurance (GIWL)

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Lifetime

HEALTH CLASSIFICATIONS:  None – Guaranteed Approval

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: (Ages 50-80)

GUARANTEED CASH VALUES: Yes

AIG GUARANTEED ISSUE WHOLE LIFE HIGHLIGHTS  

If you need a guaranteed life insurance policy, AIG’s GIWL coverage should be at the top of your list.  

Recently added to AIG’s line of available life insurance coverage, GIWL is quickly becoming a preferred choice for many.

This is mainly due to its affordable pricing and simple application process compared to the other competition.

Most applications can be processed and approved in as little as 15 minutes.

An extra bonus included with the life insurance coverage is the Chronic Illness and Terminal Illness riders that comes free of charge.

These riders can provide money to help assist with costs associated with either two of these illnesses.

Since this coverage is guaranteed issue, the death benefit is graded. This means that if death occurs from anything other than accidental, the only benefit payable to the beneficiary will be a full 100% of refunds paid plus 10% interest. After the second year, the full death benefit will be payable.

For additional company and product information, please visit our AIG Life Insurance page. 

 


Best Whole Life Insurance Companies Assurity

Assurity

A.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: LifeScape Simplified Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  Standard Classes

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $50,000

ISSUE AGES: (Ages 0-80)

GUARANTEED CASH VALUES: Yes

ASSURITY LIFESCAPE SIMPLIFIED WHOLE LIFE HIGHLIGHTS  

Assurity simplified whole life insurance is a great choice for anyone looking for affordable life insurance and does not require a large amount coverage.

Since the maximum death benefit is only $50,000 this coverage is ideal for covering final expenses or even burial expenses.

Not only is Assurity whole life great for smaller death benefits, it’s also perfect whole life insurance for seniors that may not be in the greatest of health.

Since underwriting is simplified you will not be required to take a medical exam when applying. Simply answer a few health questions on the application and you can be approved in as little as 4 days.

Another important feature of Assurity simplified whole life insurance is that is comes is three different death benefit options known as level, modified and graded.

Depending on the responses to the health questions, you may qualify for one of the three death benefit options.

Level

  • Pays out 100% of the death benefit at death

Modified

  • 40% of death benefit year 1
  • 75% of death benefit year 2
  • 100% of death benefit year 3 onward

Graded

  • 110% return of premium year 1
  • 220% of death benefit year 2
  • 100% of death benefit year 3 onward

 


Best Whole Life Insurance Companies AXA

Axa

A.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: Interest Sensitive Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Lifetime

HEALTH CLASSIFICATIONS:  Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $50,000

MAXIMUM COVERAGE AMOUNT: $1,000,000

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

AXA INTEREST SENSITIVE WHOLE LIFE HIGHLIGHTS  

Axa Interest Sensitive Whole Life Insurance provides a lifetime of protection with a fixed premium and guaranteed cash values.

The greatest feature offered on Axa’s whole life insurance coverage is how it builds up cash values.

With a competitive guaranteed minimum interest rate of 2%, cash values will grow on a tax-deferred basis to equal the policy’s death benefit.

The 2% interest however is just the guaranteed minimum and can be higher resulting in larger cash values.

An additional feature offered with the life insurance coverage is the Customer Loyalty Credit. This is a non-guaranteed feature that begins either at age 65 or the 11th policy year that can pay an additional dollar amount into the cash value account.

Optional policy riders such as disability premium waiver rider and children’s term insurance rider can also be added to the life insurance at an extra cost.

A free policy rider called the living benefits rider can be very helpful in advancing cash from the death benefit in the result of a qualifying terminal illness.

 


Best Whole Life Insurance Companies Cincinnati Life

Cincinnati Life

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Guaranteed Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $10,000

MAXIMUM COVERAGE AMOUNT: $1,000,000

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

CINCINNATI GUARANTEED WHOLE LIFE HIGHLIGHTS  

Cincinnati Life’s biggest feature to their whole life insurance coverage is the wide variety of different premium options.

Coverage comes available in either level pay, 10-pay, paid up at age 65 and even single pay.

Provided premiums are paid on time, coverage will never be canceled and will grow guaranteed cash values on a tax-deferred basis.

For those looking for a non-med option, Cincinnati offers it through ages 18-60 as long as the death benefit is below $99,999.

Additional policy riders such as accidental death benefit, disability waiver of premium, children’s term insurance and insured insurability rider which allows for additional coverage to be purchased at later years, can all be purchased at an additional cost.

Cincinnati Life also offers a free policy rider called the accelerated benefit rider that can pay upon a qualifying terminal illness or permanent confinement to a nursing home.

Lastly, if you’re a tobacco chewer Cincinnati Life is the company you will want to consider. Cincinnati Life views tobacco chewers as non-smokers when most companies don’t. This can be a significant savings in premium payments.

For additional company and product information, please visit our Cincinnati Life Insurance page. 

 


Best Life Insurance Companies Foresters Financial

Foresters

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: PlanRight Whole Life Insurance

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $2,000

MAXIMUM COVERAGE AMOUNT: $35,000

ISSUE AGES: (Ages 50-85)

GUARANTEED CASH VALUES: Yes

FORESTERS PLANRIGHT WHOLE LIFE HIGHLIGHTS  

Forester PlanRight Whole Life Insurance is another great whole life insurance option designed for seniors.

Similar to Assurity LifeScape coverage, PlanRight also comes available in three different death benefit options of level, graded and modified.

The death benefit option you may qualify will be dependent on your answers to the medical questions on the application.

Underwriting is simplified so that means you will not be required to take a medical exam when applying.

PlanRight whole life insurance coverage can also be enhanced by adding the accidental death benefit rider which is available at an additional cost.

A free rider added with the life insurance coverage is the Common Carrier Accidental Death Rider. This rider can payout an extra death benefit if death has resulted in accidental injuries that have occurred while riding as a fare-paying passenger on a common carrier such as a bus or train.   

Level

  • Pays out 100% of the death benefit at death

Graded

  • 30% of the death benefit in year 1
  • 70% of the death benefit in year 2
  • 100% of the death benefit starting year 3

Modified

  • 110% return of premium year 1
  • 220% of death benefit year 2
  • 100% of death benefit year 3 onward

 


Best Whole Life Insurance Companies Gerber Life

Gerber Life Insurance

A.M. BEST’S RATING: (A) Excellent Rating

POLICY NAME: Gerber Life Guaranteed Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  None – Guaranteed Issue

MINIMUM COVERAGE AMOUNT: $5,000

MAXIMUM COVERAGE AMOUNT: $25,000

ISSUE AGES: (Ages 50-80)

GUARANTEED CASH VALUES: Yes

GERBER LIFE GUARANTEED LIFE HIGHLIGHTS  

It can easily be said that Gerber’s guaranteed whole life insurance is one of the most popular options for guaranteed issue whole life insurance coverage.

Regardless of your past or current health, you cannot be denied coverage.

However, with this coverage comes a graded death benefit. This means that if death occurs from anything other than an accident in the first two years, the only benefit paid will be a full return of premium plus 10% interest.

Gerber guaranteed issue does not require a medical exam or have any health questions to answer whatsoever. Premiums will never increase, coverage will last a lifetime and applying can be done on paper or a quick electronic application process.

For adults and seniors that need life insurance coverage to coverage final expenses such as funeral costs, medical bills, emergencies or any last debts, consider Gerber Guaranteed Acceptance Whole Life Insurance. 

For additional company and product information, please visit our Gerber Life Insurance page. 

 


Best Whole Life Insurance Companies Nationwide

Nationwide

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: YourLife Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 120

HEALTH CLASSIFICATIONS:  Preferred & Standard Classes

MINIMUM COVERAGE AMOUNT: $10,000

MAXIMUM COVERAGE AMOUNT: $1,000,000+

ISSUE AGES: (Ages 50-80)

GUARANTEED CASH VALUES: Yes

NATIONWIDE YOUR LIFE WHOLE LIFE HIGHLIGHTS  

Nationwide promotes their whole life insurance coverage as straightforward permanent life insurance protection that is reasonably priced and we couldn’t agree more.

If you’re looking for a limited pay option, YourLife has a 20 year pay, in addition to its pay to age 100 which is the standard option.

Optional policy riders can be added to the life insurance coverage which include as 20 year term spouse rider, accidental death benefit rider, children’s term insurance rider, guaranteed insurability benefit rider, owner’s waiver of premium death or disability benefit rider and waiver of premium rider.

 


Best Whole Life Insurance Companies Mutual of Omaha

Mutual of Omaha

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: Living Promise Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Lifetime

HEALTH CLASSIFICATIONS:  Standard Class

MINIMUM COVERAGE AMOUNT: $2,000

MAXIMUM COVERAGE AMOUNT: $40,000

ISSUE AGES: (Ages 45-85)

GUARANTEED CASH VALUES: Yes

LIVING PROMISE WHOLE LIFE HIGHLIGHTS  

Mutual of Omaha Living Promise whole life insurance is another top choice for final expense type life insurance.

This is mostly due to their smaller death benefit options, simplified no medical exam underwriting and a very easy application process.

Compared to many of the other life insurance companies that specialize in final expense whole life insurance coverage,  Mutual of Omaha is often priced better than most of their competition especially for the elderly that do not require a large amount of life insurance coverage.

Along with their very reasonable rates, they can be a very favorable option for those with slightly riskier health conditions as they offer both a level death benefit option as well as a graded death benefit option.

For those that qualify for level death benefit coverage, Living Promise whole life insurance will come with a free living benefits rider that will allow for a portion of the death benefit to be advanced if diagnosed with a qualifying terminal illness or require permanent confinement to a nursing home.

Optional policy riders such as the Accidental Death Benefit Rider can be added to the life insurance coverage at an additional cost. These riders are not available on the graded death benefit option.

Level

  • Pays out 100% of the death benefit at death

Graded

  • 100% of all premiums paid plus 10% interest if death occurs is policy years 1 or 2
  • 100% of the death benefit starting year 3

 


Best Whole Life Insurance Companies Sagicor

Sagicor

A.M. BEST’S RATING: (A-) Excellent Rating

POLICY NAME: Sage Whole Life

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  Standard & Preferred

MINIMUM COVERAGE AMOUNT: $25,000

MAXIMUM COVERAGE AMOUNT: $250,000

ISSUE AGES: (Ages 0-85)

GUARANTEED CASH VALUES: Yes

SAGICOR SAGE WHOLE LIFE HIGHLIGHTS  

Sagicor Sage Whole Life Insurance like other non-participating options provide guaranteed cash values, death benefit and level premiums for an entire lifetime.

What sets Sage Whole Life apart from their competition is their accelerated no medical exam underwriting for higher coverage amounts.

Sage term allows for up to $250,000 of whole life insurance coverage to be purchased on a non-med basis through their electronic application process.

Some qualified applicants can even get an approval within a day!

If you’re looking to add extra protection to the life insurance coverage, Sage Whole Life offers an accidental death benefit rider, waiver of premium rider and even a children’s term insurance rider.

One free rider included with the life insurance coverage is the Accelerated Benefit Insurance Rider which can provide funds from the death benefit to help assists with costs associated with a qualifying terminal illness.

If you’re looking for something in which you can make one single premium payment and have your life insurance completely paid up, Sagicor offers it with two single premium options known as the Fixed Indexed Single Premium and Interest Sensitive options.

The main difference between the two options will lay in the potential cash value build up within the policy.

For additional company and product information, please visit our Sagicor Life Insurance page. 

 


Best Whole Life Insurance Companies Transamerica

Transamerica

A.M. BEST’S RATING: (A+) Superior Rating

POLICY NAME: Guaranteed Whole Life Insurance

TYPE OF POLICY: Non-Participating Whole Life Insurance

MAXIMUM COVERAGE LENGTH: Age 121

HEALTH CLASSIFICATIONS:  Standard

MINIMUM COVERAGE AMOUNT: $2,000

MAXIMUM COVERAGE AMOUNT: $3,000,000

ISSUE AGES: (Ages 0-80)

GUARANTEED CASH VALUES: Yes

TRANSAMERICA GUARANTEED WHOLE LIFE HIGHLIGHTS  

Transamerica whole life insurance coverage comes available in both simplified underwriting as well as full medical underwriting.

The difference between the two options will be within the amount of coverage being applied.

For smaller death benefits requiring less than $50,000 of coverage, the application process will consist of only an application with a few qualifying health questions.

Transamerica whole life insurance also comes available in higher coverage amounts of up to $3,000,000 which will require full underwriting in order to qualify.

Like all non-participating whole life insurance policies, Transamerica’s also comes with a level paying premium period to age 100 along with a guaranteed death benefit.

If you apply for coverage over $50,000 you will have a few optional policy riders that can be added to the life insurance coverage such as the Children’s Insurance Rider and Waiver of Premium rider.

A free rider included only on policy amount over $50,000 will comes with a free policy rider called the Accelerated Death Benefit. This rider can pay out an early death benefit if diagnosed with a qualifying terminal illness.

For additional company and product information, please visit our Transamerica Life Insurance page. 

 

What to Expect when you Apply for Whole Life Insurance

Once you have decided on a company as well as how much coverage (the amount paid to the beneficiary upon the insured’s death) is needed, the insurance company will determine the cost of insurance.

This would where underwriting begins.

Underwriting is about assessing risk. Because whole life insurance can remain in force for a person’s lifetime, underwriters use a broader range of information for their calculations.

In addition to the basics of age, gender, body mass index (BMI), and smoking status, underwriters ask for more detailed health and lifestyle data.

In many cases, a physical exam by an authorized healthcare provider is requested.

But the extent of the medical information requested by the insurance company’s underwriter can vary.

Common factors that can affect the depth of medical review include the amount of requested coverage, the insured’s age, and the status of other policies covering the insured’s life.

Top Quote Life Insurance will assist you throughout the entire underwriting process to ensure a quick as possible turnaround time.

 

Whole Life Insurance most Asked Questions

Whole life insurance is one of the most searched types of life insurance coverage online. With that, there are several questions asked regarding the popular coverage. In hopes of providing you a one stop place for all your whole life insurance needs, we have put together answers to some of the most asked questions pertaining to whole life insurance.

Be sure to use the contact form at the bottom to submit any questions you have that may not be answered here. 

 

Is buying a whole life insurance policy worth it?

As we mentioned earlier in this article, whole life insurance is a highly debatable life insurance topic among both financial and insurance professionals.

A little research online about whole life insurance will prove that. We can guarantee that you will see several arguments as to why you should and shouldn’t  buy a whole life insurance policy.

However we truly believe that every life insurance product serves a purpose to one’s unique individual needs and we all have different insurance needs.

That is the great thing about life insurance and the progress that it has made over the past several decades.

We have so many available coverage options to make sure we purchase the right type of life insurance coverage to protect our family.

If whole life insurance wasn’t a good option for so many, than there wouldn’t be as many companies offering it as there currently are.

But with that said, we do recommend doing some research and learning about all the available types of coverage options out there.

Top Quote Life Insurance is a great place to do that.  

 

How does whole life insurance build up cash values?

Every whole life insurance policy is guaranteed to build cash values.

The insurance company will have what is known as guaranteed interest rate to help build the cash values. This rate is often 4%, but can vary depending on the life insurance company.

When you make a premium payment on your life insurance, a portion of that premium will go towards the overall cost of the insurance and the other part towards the cash value account.

The interest rate works with portion that goes into the cash value account to help grow the cash value on a tax deferred basis.

For life insurance policies that have the ability to pay out dividends, those funds can be added to the overall cash values.

The overall amount of cash value growth will depend on several factors that include:

  • Is the life insurance coverage participating or non-participating?
  • What are the historical dividend rates?
  • What is the pay duration? Single Pay, Limited Pay or Level Pay?
  • What is the guaranteed cash value interest rate?
  • Are policy riders being utilized to help cash growth?

 

Can a whole life insurance policy mature?

Whole life insurance is designed to last an entire lifetime, but in reality they do mature.

Most whole life insurance policies will mature at age 121 with a few at age 100.

When a whole life insurance policy reaches it maturity, the cash value will usually be equal to the death benefit. At that time, the insurance company will pay out the cash value which should equal the death benefit.

 

Others say I should buy term insurance, why?

Affordability.

Compared to the cost of a whole life insurance policy, term life insurance will always be significantly cheaper.

This is mostly due to the fact that term insurance is not permanent coverage and it does not accumulate any cash values.

Because of its affordability, it makes sense for many families to purchase term insurance as they can generally purchase enough death benefit protection without having to pay price of a permanent policy.

We do agree that whole life insurance is not for everyone and a term insurance can in most cases be the best coverage to cover all life insurance needs.

If life insurance needs are not permanent and the focus is not in cash accumulation then a term insurance policy is the way to go.

NOTE: If you’re not concerned about cash value growth but like the idea of having permanent life insurance protection, consider looking into a guaranteed universal life insurance policy.

Guaranteed universal life insurance is permanent life insurance that has a fixed premium, but does not focus on cash values but rather affordable permanent protection.

Another option to consider is a blend of both term insurance and whole life insurance.

Purchase a higher term life insurance policy to cover immediate needs and a smaller whole life policy to coverage final expenses when the term insurance expires.

 

How much whole life insurance coverage should I buy?

When purchasing life insurance you want to take in consideration both short and long term financial needs.

Since everyone’s financial needs will differ from each other, it is impossible to put out a correct number that will work for everyone.

The best way to figure out how much life insurance coverage you need, whether it’s term insurance or permanent insurance will be to talk with an experienced agent.

By working with an agent or agency such as ours, we can understand your objective and pinpoint a correct amount of coverage rather then you doing it on your own.

 

How to get a Whole Life Insurance Quote & Apply

Knowing which is the right whole life product for you can be an overwhelming task.

We are hoping this article has helped provide you with enough information to make a well-informed decision when it comes purchasing a whole insurance policy.

At Top Quote Life Insurance, we’re always available to answer your questions and give you online quotes.

Don’t put off getting life insurance to protect your loved one’s financial well-being. Contact us if you need any help finding the best whole life insurance providers for your needs.

2018-04-05T20:34:44+00:00

About the Author:

Jeffrey Manola is the owner and an experienced life insurance agent at Top Quote Life Insurance.

His goal is to provide online consumers with the absolute top quotes for all term life insurance, permanent life insurance and no medical exam life insurance. Not only does he strive to provide you with the best premium for your life insurance coverage, he also wants you to be well informed about life insurance coverage options and its importance.

Never hesitate to reach out to Jeffrey if you need help. Top Quote Life Insurance is more than just an online quoting agency we want to help you save money, protect your future, and earn your trust (888) 777-7574.