Whole Life Insurance


term-life-insurance-quote Whole Life insurance is the other form of permanent life insurance, the other being Universal Life. As such, permanent plans by their very name are just that, permanent. That is, as long as premiums are paid the policy will always be in force. Up to age 100 or 120.

Although Universal Life, also known as Flexible Premium Adjustable Life, has in a large part taken the role traditionally filled by Whole Life, the venerable whole life still has a place and is in use today. Whole Life is used in situations where Universal Life is not warranted, such as in the lower face amounts, that is under $25,000 and is used in a host of situations where it competes head to head with universal life, in some larger policy sizes. This is to a lesser extent since the majority of life insurance carriers have shifted their product portfolios to universal life and away from whole life.

Like Universal Life, Whole Life builds “cash value” and the premiums do not change during the life of the policy. Permanent plans are most suitable when the need for the life insurance is long term or actually permanent. If there is a need for life insurance that will be ongoing, say for Estate Tax, then either of the forms of permanent life insurance (Whole Life or Universal) is the right choice.