Explore whole life insurance.
Learn about the different types of life insurance to find coverage that works best for you and your family.
What is whole life insurance?
Whole life insurance falls under the category of permanent life insurance and provides a set amount of coverage (decided by you) for as long as you live, for which you pay monthly premiums. When you purchase whole life insurance, you also designate one or more individuals—called beneficiaries—to receive the policy’s death benefit when you pass away.
- Lifetime Coverage – Whole life insurance provides coverage for a lifetime. If you currently have a term life policy, but are looking for lifelong coverage, you can always convert from term to a whole life policy.
- Set Premium – The premium for whole life insurance never changes and is also referred to as a level premium. What you pay for the first month is what you’ll pay for every month the policy is in force.
- Cash Value – As your premiums accrue, and at a time specified by the insurance company, you can borrow against your whole life policy’s cash value. However, if you pass away before paying back the loan, the benefit paid to your beneficiaries will be reduced. You also have the option to cancel your policy, end your coverage and receive part or all of the cash value.
Who should buy whole life insurance?
Whole life insurance may be a good fit for you if:
- You want lifetime coverage with the option to borrow on that coverage.
- Your budget allows for a more expensive premium.
- You want to maximize your pension with a life insurance policy.
While purchasing a lifetime of coverage at a set premium is attractive, most people who don’t have complex estate planning needs or intricate financial holdings find they can achieve the same peace-of-mind from term life insurance.
If you do decide to buy whole life insurance, it’s better to buy it when you’re young and in the best health. Your monthly premium, which is set for life, is based on your age, health and other factors at the time of purchase.
What are my other life insurance options?
Affordability can be an important part of your life insurance purchase decision. At SelectQuote, our goal is to help you find the best coverage for you at a price you can afford.
For many people, term life is an excellent way to create financial protection for loved ones and others who depend on your income. It’s simple, convenient and very affordable—often as much as 10 times less than the cost of whole life insurance. And it has options.
You can choose the policy length that fits your needs typically for 10, 15, 20, 25 or 30-year periods. If you unexpectedly pass away, the life insurance you took the time to put in place will provide your beneficiaries with the funds they need to pay for critical expenses such as a home mortgage, college tuition and even your final expenses.
Let us help you protect your family and the assets most important to you.