What Is Whole Life Insurance?

By Author: Brian Reed.
Total Articles: 6
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Life insurance has a long history. All the way back to the ancient Romans, people have invested a little over time to insure their family could carry on with financial security after they are gone. Today, life insurance companies have many different options and plans based upon individuals' objectives and goals. One of the most secure forms of insurance over the course of life is whole life insurance. So what is whole life insurance and why would someone want or need it? Whole life insurance is insurance that pays benefits as long as premiums are paid. Whole life insurance policies are designed and priced for you to keep over a long period of time, so it is important to choose this type of premium only if you plan to keep it for a lifetime. If you aren't sure about whether you will keep the insurance, or if you are unsure about your life insurance plans, then you are going to want to purchase term life insurance. The main differences between whole life and term life insurance are the length of the policy and cost. Whole life insurance, in theory, lasts for the entire duration of your life, so the insurance company will end ...
... up paying a death benefit. Therefore, the premium is higher. On the other hand, term life lasts only for a specific period of time, from one year up to 30 years, depending on the type of term life insurance you choose. Since term life lasts for a shorter period of time, there is less probability that an insurance company will need to pay death benefits. Therefore,the cost is typically lower.
Whole life is a type of permanent life insuranceA whole life policy provides life-long protection and is guaranteed to do so by the insurance company. With whole life, you pay a fixed premium for life, instead of the increasing premiums found on renewable term life insurance policies.
Additionally, whole life has a cash value component. What this means is as you pay into the policy, part of your premium is allocated toward the insurance component and part is allocated to the insurance company's general investment account, which can eventually grow with interest. You can potentially access the cash value of the policy without a tax consequence, and if you die, neither does your beneficiary.
If you want the most competitive quote on a whole life insurance policy, lifeinsure.com has access to the leading and most competitive life insurance policies available. Even if you have questions about what policy will best suit you, Lifeinsure.com has a toll free phone line where you can find out which policy would work best for you and your family. LifeInsure.com is built on a new philosophy of allowing consumers to access life insurance and term life insurance rates and quotes anonymously online. For years, LifeInsure.com has been an online life insurance company dedicated to helping visitors find low cost life insurance policies to suit their needs. LifeInsure.com is one of the top life insurance companies on the internet, helping you find information for the right life insurance plan for you.